JP2008516350A - A data processing system that supports the decision to accept or reject an application for funding - Google Patents

Abstract

Disclosed are data processing systems and methods that find particular use in equity financial mortgages. The integrated system (600) is formed from a target investment system (100), an asset origination system (200), an asset securitization system (400), an asset servicing system (300), and an asset management system (500). Apply financial feedback to ensure targets are achieved. Mortgages are selected to be pooled and sold to investors and accepted based on the preferences that the investors indicate.
[Selection] Figure 2

Description

  The present invention relates to a data processing system and method using computer-generated digitally encoded electrical waveforms in the implementation of a novel financial system and method. In the description contained herein, the present invention is primarily directed to state-dependent or collateral-dependent financial agreements (typically debt contracts) for real estate assets and the selection, selection, processing, and securitization of such financial agreements. And a new data processing system and method necessary for portfolio management. However, the application of the present invention is not limited to either bonds or real estate assets as such. The present invention can be applied to many different types of financial agreements involving a significant number of asset categories (e.g. goods or human capital).

  This document contains copyrighted material. The applicant as the copyright holder has no objection to copying this patent document exactly as it appears in the Patent and Trademark Office file or record, but otherwise reserves all copyrights. To do.

(Background technology)
The global mortgage industry has developed rapidly over the last 50 years. This is especially true with respect to the emergence of “securitization” transactions, in which the mortgage bundles are comprehensively sold to a third party to balance the bank to contract in a new round of cost-effective lending. Release the sheet. As a result, a fluid secondary market has developed in mortgage-backed securities that are actively traded by investors around the world.

  However, early mortgage market reforms are relatively exaggerated. Since the turn of the 20th century, global housing finance has been dominated by either fixed rate or floating rate mortgage bonds. Although there have been some reforms around these products (eg, interest-only contracts, home equity loans, etc.), this is fundamental to how consumers fund their home ownership options. No significant changes occurred.

  Perhaps one exception in this case is “reverse mortgage” where the mortgage interest rate doubles or “rises” over time, thereby delaying the cost of the loan until the consumer dies or sells the property. It is. Thus, in reverse mortgages, there are no recurring interest and principal payments received by consumers. Further, reverse mortgages are limited to a specific class of consumers, i.e. senior citizens. In fact, the providers of these products typically explicitly prevent consumers under the age of 65 from qualifying for such loans. Reverse mortgages are also not used to purchase new assets, but on the contrary, an “equity release” mechanism for homeowners who currently live in self-owned homes that are wealthy but lack cash It is limited to the use. As a result, reverse mortgage has nothing to do with traditional housing finance. Last but not least, reverse mortgages, in their own way, are simple interest-bearing securities that are attractive only to fixed-income investors. Whatever reverse mortgage is, the change in the basic property value held by the mortgage (ie the residential real estate asset class) to the lender (or third party investor in the case of securitization) There is no exposure to the risks and returns associated with.

  In 2003, a new approach to reducing householding prices in Landmark Government Reports in Australia (C. Joye, A. Caplin, E. Glaeser, P. Butt, M. Kucynski (2003); The Housing Ownership Task Force Report, Menzies Research Center) opens the door to a new area of housing finance potential, with particular emphasis on attracting consumers to the “equity” side of the housing balance sheet. For the first time, institutional investors were offered efficient use of the residential real estate asset class. This was actually a series of highly evolved proposals for many (mostly unrealistic) agreements that have been proposed by both industry and academia.

  In addition to the so-called “shared appreciation” mortgages in the UK and US private sector, various cottage-industry-sharing equity programs targeting undergraduate and low-income households (Australia, UK, US, And almost exclusively in New Zealand's academic and public sector). However, there are still no successful examples of continuous market-based programs in which a large number of consumers share a similar number of external investors with long-term economic exposure to owner residences. The 2003 Australian Prime Minister's Residential Property Task Force Report (hereinafter “Report”) only outlines the conceptual architecture that such a market could develop.

  Specifically, the report shows that for centuries, businesses that need funds can use both debt and equity, but in households that want to expand, use mortgage finance Has been limited. Thus, despite the high growth of the corporate capital market, consumers around the world are forced to use the most immature financial products. The report argues that the consequences that could be caused by this flaw vary from simply inconvenient to very speculative. Many of the important economic issues that are evident throughout the life cycle of a resident are “alternative constraints” on home ownership (ie, a household needs to retain 100% of its equity. Suffice it to say that the investment in residential real estate assets cannot be shared with a third party).

  The report describes how this alternative constraint on housing ownership (also referred to as “inseparability” of housing assets) annoys consumers from the beginning to the end of the life cycle period. Yes. For example, younger generation households rush to collect funds for down payments so that they can proceed to a home-owned paradise proposed from the problem of rental housing facilities. This eagerness to save often tightens consumption considerably and severely restricts lifestyle options. In fact, the majority of young generation households in some countries are forced to entrust almost 70% of their total wealth to one highly illiquid and highly variable asset, namely residential real estate. Second, there are costs associated with mortgage servicing and residential maintenance. Due to this burden of responsibility, families often have to endure a frugal state—so-called “housing deficiencies” —from young to middle-aged generations. In his later life, he managed to pay off all his debts and live freely in the house. Unfortunately, retirement occurred around this time, and the majority of residents had little significant income (other than the old-age pension). At this point they are “rich in assets but poor in cash”. In fact, a significant portion of the elderly are in the two lowest income class.

  In an attempt to correct the imbalance between legal entities and the household capital market, the report provides flexibility to provide households with the option to use both “debt” and synthetic “equity” finance when purchasing their property. It is proposed that a simultaneous system can increase the number of simultaneous agreements. Based on the report's proposal, houses will be funded using traditional mortgages in combination with synthetic equity capital, which may be the same or different via “state or collateral dependent” debt contracts. The normal interest rate is then replaced by future positive and / or negative price fluctuations associated with changes in the value of the underlying property on which the debt security is held by entitlement or claims "). The report shows that these “equity financing” agreements, in particular, have reduced the initial cost of home ownership by more than 30% and, when moved to residence (as a result of reduced debt servicing obligations), consumer disposable income Retirement households, as traditional mortgage amounts are small, reduce the risk of default and no longer have to divide most of the savings into other illiquid resident assets Claims that it can substantially increase its current assets. Thus, the household previously locked out of the market due to high prices, the report argues that the use of equity finance makes home ownership a much more realistic goal.

  The report also uses equity financing to form a safer equity release mechanism for wealthy but cash-poored older people (relative to the population) compared to reverse mortgages. Insist that it will be. The report concludes that it is a pity that many seniors are forced to choose between two completely different pathways due to the illiquidity of housing equity. These are either (1) whether you will continue to wander between poverty while retaining your right to live in a house that you have cherished for many years, or (2) you will sell your current home and move to a small house, and in some cases live Any of these financial troubles can be mitigated by damaging the human relationships formed in The advantage suggested by the latter option is, of course, to improve other opaque consumer outlooks for homeowners.

  The report states that the opportunity for equity releases has ended without the attention of the financial industry. Indeed, several attempts have been made to give homeowners the means to liberalize assets held in the form of homes. This includes products such as reverse mortgages, value added mortgages, and home-secured loans. Despite the recent growth of reverse mortgages, the success of these recruitments has been slow, to say the least. It is understood that the vast majority of older residents spend their middle age constrained by creditors, and that they do not want to assume any more debt (at least in the traditional embodiment). The At the same time, this usually requires moving to a completely different geography, which has the detrimental effect of sacrificing social ties based on the close proximity of the two parties, so it will not be replaced by a smaller home. Many people choose to do that. The strong psychological ties to these current assets can create substantial obstacles to raising consumption levels, so most financial planners will need to assess the resources available in their later lives. There is a tendency to ignore owner residences.

  In view of the above, the report opens up new areas in the possibilities of elderly residents by eliminating the “inseparability” of residential assets (ie by sharing equity grant rights with third parties) He argues that there is little doubt about what can be done. In contrast to many alternatives, the report suggests that collateral-dependent equity financing gives older owners three particularly attractive attributes. (1) No need to bear all the emotional stress associated with moving from the current residence, (2) No need to accept traditional debt, and most importantly, ( 3) Compared to reverse mortgages, equity financial products leave consumers a significant proportion of equity in their homes in the worst possible contingencies. On the other hand, in reverse mortgage, this same borrower has an adverse effect that the growing amount of loans eventually swells until it consumes 100% of the value of the house, thereby reducing equity or even negatively. You bear the risk of receiving it.

  Another important advantage afforded by equity finance is the useful insurance services offered by lenders by sharing a certain percentage of downside risk (ie, the risk of property prices is falling). The simple fact is that most homeowners own a residence that is located in one street, oriented in one direction and with all of its obvious characteristics. In fact, economists estimate that the “specific” risk due to being a single family home is greater than two to three times the risk that would be attributed to a well-distributed property portfolio. (Of course, using a large amount of leverage only serves to increase these risks).

  Equity instruments in the report are designed to lower capital costs when the housing market falls, but to be relatively high when the economy is booming (which is clearly ideal from a consumer perspective) . That is, in the absence of price increases, households are not required to transfer economically to a lending institution or individual (or synthetic equity provider) in addition to the original loan amount, and certainly for large mortgages. This is an excellent result for interest payments. In the presence of price depreciation (as in the early 1990s), households benefit from being able to redistribute some of these risks to investors. In contrast, all other forms of borrowing (including reverse mortgages) do not have this flexibility and are therefore clearly distinguished from equity financial mortgages.

  For investors, it's complicated, but it just looks attractive. Residential real estate is by far the largest asset class on the planet and is valued at $ 70 trillion in developed countries alone. Since 1960, residential real estate has risk-adjusted out-performance stocks, bonds and real estate investment trusts. It is also a highly “uncorrelated” investment category, which can provide significant variance gains to prospective participants. The plunging stock market experienced in 1987 and 2001 is a good classic case, with global equity suffering considerable losses, but significant increases in prices for homes owned by owners in Australia, Europe and North America Was brought. Therefore, if a financial institution can expand its reserves in a larger number of baskets, it will be able to greatly increase (decrease) portfolio return (risk) while keeping the risk (return) constant. Become. Of course, it is not currently possible to use the risk-return profile of real estate in a sufficiently decentralized manner or to buy and sell housing equity in the liquid market.

  The report gives an impressive picture of the opportunities for equity finance and outlines the framework on how these agreements can actually be developed, but for example, before deadlines by consumers who want to stay home Fundamental issues associated with the economic pricing of equity financial contracts, including redemptions, refinancing of traditional interest-bearing mortgages that will be bundled, and remediations that the owner takes on property that serves as contractual collateral. There is no clear contractual solution. As a result, for the consumer side of the equity financial ledger (ie, taking the capital market issue to a temporary shelf), the report “pauses” (eg, prepaid the equity instrument for the lender's loss). General proposals on how to reliably solve the serious problems associated with (borrowers) and “moral hazards” (for example, borrowers who do not seek to maximize property value or undermine future sales) Did not go. The report also does not mention core technology systems that allow lenders of both traditional interest rate mortgages and equity financial instruments to avoid conflicts of interest and thus interact in an advantageous manner.

  In terms of capital markets, the report also outlines the broad nature of equity financial opportunities, but distributors, lenders, underwriters and / or funders of these equity financial contracts identify such assets. Used to screen, select, securitize, repay, and continue in time series to ensure a good and sustainable relationship between consumers and investors in the equity financial market It does not clearly indicate the methods, systems, and technologies that need to manage the entire portfolio that is deployed.

Many commercial problems that were otherwise difficult to solve in the above case have motivated the development of the present invention.
There have been several private and public sector programs that have attempted to implement agreements somewhat similar to the equity financing and initiatives of the above report.

  In 1987, the US Congress, under the National Housing Act, (1) made it possible to convert residential equity into liquid assets to meet the needs of older homeowners, and (2) (3) Residential equity conversion mortgages (3) to determine the degree of demand for residential equity conversion and the type of mortgage that will best serve the needs of the elderly “HECM”) established an insurance demonstration program. Following the HECM program, older homeowners are able to undertake residential equity-backed reverse mortgages. When the borrower receives payment, the amount of debt on the mortgage increases over time. This debt is non-recourse, suggesting that only the residence value serves as collateral and that other personal assets cannot be confiscated even if this value is not sufficient to redeem the loan.

  Initially, the Department of Housing and Urban Development (“HUD”), authorized by the Congress to provide insurance for 2,500 reverse mortgages until September 1991, consulted with other agencies of the federal government. A demonstration program was designed and implemented in July 1989 with final rules. The following year, Congress extended the demonstration to 1995 and expanded HUD's authority to provide insurance for 25,000 mortgages. Subsequently, the program was revised again to give HUD the authority to provide insurance for up to 50,000 mortgages until September 30, 2000. In October 1998, Congress increased the allowable accrued debt to 150,000.

  However, for reasons outlined above, such interest-bearing reverse mortgages (where lenders do not take the risks associated with the underlying property and do not receive returns) are significantly different from equity instruments.

  Also in the United States, state and time-dependent “value appreciation” sharing mortgages (“SAMs”) were developed in response to inflationary pressures experienced in the 1970s and are disclosed herein as “upward” and “ It is the closest prior art to "downward" collateral-dependent equity financial mortgage technology. As general price levels rise, there is a pre-emptive method for interest payments on standard mortgage securities. In other words, inflation raises the nominal interest rate and simultaneously pushes down the real value of outstanding debt. This preemption scheme allows the user to pay the current low interest rate that is time-dependent, instead of the investor receiving a collateral-dependent share of future housing value growth induced by inflation. The range of decreases.

  SAMs recruited in the United States were relatively short (approximately 10 years), combined with a substantial devaluation of interest payments and a substantial share of appreciation. In particular, one product offered a 6% / year interest fee to households at the expense of a contingent claim of 40% of the calculated price increase. Such merchandise was rarely issued in practice due to the uncertain taxation of one. The main duties of the US IRS are tax collection and tax evasion prevention. Unfortunately, this seems to affect the attitude of the SAM when making decisions about the nasty question of whether to grant mortgage interest rate rights to the householder. Eventually, in 1983, the IRS determined that both fixed and unpaid interest payments for certain SAM products were actually tax deductible (somewhat unwilling to read the line spacing). This ruling was deliberately narrowed, and as another sign of inflexibility, the IRS announced twice later that in 1996 most recently it announced that it would not issue any additional decisions on this issue.

The consequences of IRS's attitude towards classic SAMs have rippled the entire US housing market to date. For example, recently there has been a well-funded and researched plan to introduce just such a product, and Memphis' National Commercial Banking Service (“NCBS”) will obtain a contract from a local issuer in the southeastern states. Bear Stearns underwrites the sale of securitized bonds. However, this product was withdrawn almost immediately, largely due to ongoing doubts regarding the IRS attitude. To see the obvious ambiguity, take a look at the advice NCBS has given to potential customers.
“Applying federal income tax rules to SAM is uncertain and complex, and this rule will affect each borrower differently, so consult your tax adviser about the consequences of borrowing under SAM. There is a need to."

  The Reverse Mortage Advisor Volume 3.2 (Spring 2000) version was developed by Financial Freedom and included the following description of another value-sharing product with a standard time-dependent interest portion. A new product called “home appreciation loan (“ HAL ”)” is still in development and can be announced in the third quarter of this year. The HAL will have many features of reverse mortgages. For example, a borrower can obtain a loan in bulk and the loan does not need to be repaid until the borrower dies or sells the house. The repayment obligation is the amount of borrowed loans plus a pre-set percentage share of accrued interest and housing appreciation during the loan period (which will be negotiated in advance between the Financial Freedom and each borrower) It becomes. The larger the percentage, the larger the loan amount. For example, if a borrower's home is valued at $ 150,000 when the HAL is formed, and this house was sold for $ 180,000 five years later, the borrower will receive 30,000 from the sale of the home to the Financial Freedom. You need to pay a certain percentage of the dollar profit. As of the priority date of the application of the present invention, commercialization of the proposed product has not yet been made by Financial Freedom or its parent company Lehman Brothers.

  More recently, bankers, employers, local governments, and nonprofits have entered value-sharing products in many of America's most expensive housing markets, from Howard, Maryland to San Diego, California. These contracts generally have one common element. That is, instead of replacing the SAM with a conventional first mortgage, as in the 1980's attempt, this scheme is usually in the form of a second mortgage or, in some cases, in the form of a joint ownership contract (for example, (See also US Pat. No. 5,983,206, which combines mortgage with a joint venture equity partner). Typically, an equity source provides 20-25% of the purchase price (in some programs this percentage can be increased to 50%) in exchange for a share similar to appreciation at the time of sale. The remainder of the acquisition costs are funded by a traditional first mortgage that is a small down payment and 70-75% of the value of the house.

  These initiatives have typically been implemented either as public-purpose programs to help low- and middle-income families or as employer-provided schemes to assist employees in obtaining housing (the latter has been , Most widely spread among universities in relatively expensive markets such as MIT, Stanford, and the University of Colorado). Therefore, it is not surprising that most are operating on a small scale, and only at most thousands of financial agreements have been created throughout the country. These are two basic reasons: (1) The current design does not provide a high enough return to attract the interest of external investors-the equity partner has typically abandoned the decision-making right Receive no insurance premiums, receive no rental yield that would normally occur in connection with direct equity investment in residential real estate, and (2) the current program shares a common contract structure It seems that it is not constructed to attract more private capital due to different parameters for everything from term to repayment scheme and legal structure. As a result, these attempts have not urged the emergence of residential equity tradeable financial products that will provide the homogeneity that secondary markets want.

  In 1996, Northbay Family Homes, a non-profit organization in the San Francisco Bay Area, developed a product known as a Regional Support Value Sharing (“CASA”) contract. Unlike its peers, CASA attracts considerable investment from banks, development companies, and other private organizations that complement government funding. The investor acquires the equity share of the residence in the form of a second mortgage, which is backed up by the local government in the third mortgage. Each of the second and third mortgages is equal to 10% of the selling price and the total equity investment is 20%. Both investors and government agencies regain funds when homeowners sell their property. Residents will need to refinance if they do not sell until 14 years later, and will buy from investors if there is room. Notably, when the house is disposed of, the family receives 40% of the increase, and the equity partner receives 60% (most of which go to private institutions). Because the San Francisco area is expensive, this initiative has proven extremely popular with residents.

  In fact, all of these CASA programs were in much greater demand than available supplies. For example, in Howard County, the recent financial round for nine buyers attracted 347 applicants. Part of the reason why demand exceeded supply is because most schemes solicited funding on exceptionally favorable conditions due to the flexibility of being offered by public funds. However, the increased demand in the CASA program indicates that a much larger consumer market may arise than it currently is.

  In all of the above cases, the state-dependent nature of value-sharing mortgage products is limited solely to the increase in the value of one area, i.e. the house. As a result, the cost of capital borne by the consumer is not affected when the property value decreases. Lenders under these agreements clearly do not assume any situation in which they wish to share any of the “risks” associated with home ownership. Viewed another way, in addition to all other forms of time-dependent interest mentioned above or not mentioned above, a certain percentage of the principal will actually be exempted if the price of the property falls. ”And“ downward ”collateral-dependent mortgage (or simply“ equity financial mortgage ”) agreements are not considered. In many respects, this downside risk sharing component of the mortgage agreement disclosed herein is to the extent that the resident attempts to limit resident exposure to unforeseen circumstances that would result in loss of property, Similar to insurance services. Many people will believe that residential property is a very safe investment, but at the individual homeowner level, this is far from true. The simple fact is that a large number of households recognize both nominal and actual losses when they sell their homes. Nevertheless, there is nothing that can be done about this in the current housing finance market, that is, 100% of all the economic risks inherent in home ownership.

According to the first aspect of the present invention, a financial entity for financial communication in which an asset is used as collateral by evaluating an application from a consumer in real time or on a batch basis using a range of decision rules. A data processing system is disclosed that allows for the conclusion of financial agreements, and the ultimate purpose of the entity is to accept or reject these applications,
(I) at least one data entry terminal into which data relating to both the consumer and the requested fund are entered;
(Ii) data processing means connected to the or each input terminal;
(Iii) a data storage means connected to the data processing means, which collectively characterizes the financial portfolio of the financial entity, including both initial portfolio data relating to applications accepted to date and necessary data relating to desired characteristics of the portfolio And when the application is accepted, the data processing means merges the input data and the portfolio data to generate corrected portfolio data representing the portfolio, and compares the required data with the corrected portfolio data, Send a signal to accept the application only if the difference between the revised portfolio data is smaller than the difference between the required data and the initial portfolio data.

According to a second aspect of the present invention, a method is disclosed for accepting, rejecting or inquiring in real-time or batch-based an application from a consumer to a financial entity for assets to be used as collateral,
(I) inputting data relating to both consumer and financial communication into a data input terminal connected to the data processing means to which the data storage means is connected;
(Ii) storing in the data storage means both initial portfolio data relating to applications received to date that collectively characterize the financial portfolio of the financial entity and necessary data relating to desired characteristics of the portfolio;
(Iii) generating revised portfolio data representing a portfolio by merging the input data and initial portfolio data when an application is received;
(Iv) comparing the modified portfolio data with the required data;
(V) accepting the application only if the difference between the required data and the modified portfolio data is less than the difference between the required data and the initial portfolio data;
including.

  According to the third aspect of the present invention, funds are financed from a third party provider, which uses the asset as collateral to provide capital to a plurality of consumers each linking one of the financial agreements. The financial system to be provided is disclosed and a financial agreement is concluded only with respect to the selected consumer and / or selected collateral assets based on one or more characteristics of the collateral assets and / or consumers, , Initially determined and / or modified over time based on preferences expressed by third party providers of capital.

  According to a fourth aspect of the invention, a computer-implemented financial system for maintaining a close approximation between an actual pool of investments and a desired pool of investments is disclosed, the system being operated by the system. Having an investment mandate specifying target values for a plurality of investment characteristics, each stored in a storage device, wherein the system maintains actual values for the plurality of investment characteristics of an actual pool of investments. Additional data storage device, the system has an investment characteristic that compares the value in the storage device with the value in the data storage device and reduces the difference between the target value and the actual value Only allow investments as additions to the actual pool of investments.

  According to a fifth aspect of the present invention, a computer-implemented financial system is disclosed for maintaining a close approximation between an actual pool of investments and a desired pool of investments, the investment pool being sought by consumers. Each of which includes a financial agreement between the entity and the entity that intends to provide the asset, and the system sets target values for a plurality of investment characteristics, each stored in a storage device operated by the system. An investment mandate for specifying, the system further comprising a data storage device in which actual values of a plurality of investment characteristics of the actual pool of investments are maintained, the system comprising the values in the storage device and the data storage device; And changing each consumer's debt obligation under a financial agreement to reduce the difference between the target value and the actual value.

According to a sixth aspect of the invention, it has both a substantially conventional interest rate mortgage for the first financial institution and a second full collateral or partial collateral dependent mortgage for the second financial institution. A method for accepting, rejecting, or inquiring a request for refinancing from a mortgage holder in real-time or batch basis is disclosed, and the request for refinancing is made to a second financial institution, Both are secured by the same property, and the method
(I) inputting the new value and refinancing amount of the property resulting from the latest evaluation into the data input terminal connected to the data processing means to which the data storage means is connected;
(Ii) In the data storage means, the initial value of the property, the principal of the first mortgage, the principal of the second mortgage, the first and second preset percentages, and the current repayment amount of the second mortgage Storing data including the rising and falling percentages necessary to calculate;
(Iii) using a data processing means to calculate a reference refinancing amount that is the product of a first preset percentage and a first mortgage principal;
(Iv) using the data processing means to calculate a current repayment amount of the second mortgage based on the new value of the property and the rising and falling percentages;
(V) using the data processing means to calculate a modified refinancing amount that is the product of a second preset percentage and the current repayment amount;
(Vi) subtracting the corrected refinancing amount from the reference refinancing amount using the data processing means to obtain a resulting refinancing amount;
(V) accepting a refinancing request only if the refinancing amount to be approved is less than the resulting refinancing amount;
including.

According to a seventh aspect of the present invention, there is disclosed a method for generating a digitally encoded electrical signal representative of the amount of a renovation credit for a mortgage setter in a full collateral dependent or partially collateral dependent mortgage, the method comprising: ,
(I) The principal value of the mortgage, the first value of the house immediately before the improvement is made, the second value of the house immediately after the improvement is made, and the sale or deemed sale of the house that concludes the mortgage. Inputting input data including the final value of the house including improvement into the data processing device;
(Ii) calculating an improvement difference including an increase in the second evaluation amount relative to the first evaluation amount and instructing the data processing device to calculate an overall difference including the final evaluation amount minus the principal;
(Iii) Of the two digitally encoded electrical signals, the first signal represents a zero amount when the total difference is negative or zero, and the second signal represents an improved difference amount when the total difference is positive Further instructing the data processing device to output any one of:
including.

According to an eighth aspect of the present invention, a method for generating a digitally encoded electrical signal representing an amount of adjustment principal for a total collateral dependency or partial collateral dependency mortgage is disclosed, wherein the total collateral dependency or partial collateral dependency is disclosed. If the property value guaranteeing the mortgage increases, the principal is adjusted by increasing the first percentage of the increase and the property value guaranteeing the full collateral dependent or partially collateral dependent mortgage decreases Defines that the principal is adjusted by decreasing by a second percentage, the method comprising:
(I) a first indicating the principal of a fully collateral dependent or partially collateral dependent mortgage, a first and second percentage, and an adjusted principal determined according to one of several pre-set events A toggle marker consisting of either a value or a second value indicating that an early prepayment has been selected by the mortgage holder and a final value of the property that is either a sale of the property or an approved increase in value. Inputting input data including data into the data processing device;
(Ii) Instructing to calculate the capital difference between the final value and the principal, and if the toggle marker is the first value, multiplying the capital difference by the first or second percentage respectively Instructing the data processing device to calculate the adjustment principal;
(Iii) If the toggle marker is a second value, set the second percentage to zero and calculate the adjusted principal by multiplying the capital difference by the first or reset second percentage Further instructing the data processing device;
(Iv) further instructing the data processing device to output a digital encoded electrical signal indicative of the amount of adjustment principal;
including.

Next, preferred embodiments of the present invention will be described with reference to the drawings.
Originating and securitizing asset-backed securities such as mortgages is a common procedure in today's capital markets, and FIG. 1 schematically illustrates some of the key processes involved. For example, each conventional bank has a mortgage origination system 10 that deals directly with a borrower 11 using the bank's balance sheet capital 9. In recent years, the borrower 11 can also directly deal with the mortgage broker 8, and the mortgage broker 8 deals with the mortgage origination system 10 of a financial institution such as a bank.

  Regardless of whom borrower 11 trades with, the result typically obtained is a standard mortgage with collateral for the term and “time-dependent” interest rates (which can be fixed or variable) and the borrower's property. . However, the value obtained in conventional mortgages by lenders and investors, and the financial return or yield, are completely independent of changes in the market value of the borrower's property (without mortgage revenue non-payment and lender seizure. Assuming).

  Such mortgages can be bundled together, for example, by transferring them to a unit trust that forms part of the mortgage securitization system 7 so that the units can be sold to investors 19. This allows the original lender balance sheet capital 9 to be returned to the lender and used as desired by the lender, but most typically the lender can be recirculated in the form of additional mortgages.

  Such traditional mortgages are a form of time-dependent interest-bearing finance and obtain returns determined by lender commitment rates that can be fixed or variable. Accordingly, the cash flows provided by these contracts are quite different from the returns obtained with collateral in which mortgages are secured (ie, collateralized real estate assets). Thus, current mortgage origination systems are more or less irrelevant to the specific characteristics of collateral assets that are collateralized for lending. In other words, modern lenders decentralize housing finance to maximize returns on property held by the mortgage if there is no dependency between the interest rate of the mortgage contract and the price change of the underlying property. do not do. In other words, modern lenders are unlikely to be listed as “investors” of the underlying assets that serve as collateral for financing contracts with borrowers. Thus, except in situations such as default and seizure, modern lenders do not have continuous exposure to changes in the capital value of collateral assets such as residential real estate.

  Another important feature of the modern housing finance market is that there is an essentially homogeneous trend in interest rates for all standard pools of securitization mortgages. Certain types of assets underlying all such pools of mortgages, and indeed the performance of these assets, is certainly not related to the interest rates imposed by lenders at the time of the financial issuance or over the entire period of the financial. is there. For example, if the Australian Federal Bank is to distribute a standard variable mortgage loan worth $ 250 million, for example, during a given month, these loans usually have the same interest rate. Will accompany. In this situation, the Australian Bank is more or less irrelevant to the geographical area and residence type in which the mortgage is issued, subject to default risk and collateral loss. The major issues with lenders are issues that affect the borrower's ability to repay the loan's interest and principal over time, ie, the borrower's past income performance, future income expectations, creditworthiness, and so on. The Australian Federal Bank can then choose to securitize these mortgages and sell them to investors around the world, who are often located in different geographies if the nature of the product is homogeneous. Will be irrelevant to what was created for various types of property (in fact, none of the properties in the pool are the same). This is the case in countries such as Australia, the UK and the US where all securitized loans need to be “insured mortgages”. In the presence of mortgage insurance, investors are protected from the risks associated with non-payment by the target borrower and the resulting collateral loss outlook (ie, the latter risk is effectively “sold” to the mortgage insurer. )

  Given the housing affordability crisis in many developed countries that exist in spite of the current low interest rate environment, the cost of capital of consumers is not dependent solely on traditional time-dependent interest rates, That is, it depends on both positive and negative changes (in some cases non-exclusively) to the value of residential real estate, and in other cases it should be determined that the lending agency has acquired a direct share of the borrower's housing There is certainly a need for an advanced financial form that does not necessarily enforce the laws on joint ownership, joint property rights, partnerships, or joint ventures. Similarly, there is a strong need to develop fundamental techniques and specific financial techniques that allow such financial products to be widely distributed and permanently underwritten by third parties.

  One complementary objective of the new method described herein is the return profile of a financial contract that is securitized or collateral-dependent (the two terms are used interchangeably below). A liquid capital market that provides third party investors with the use of sovereigns, and the performance of their financial contracts is the movement of the value of collateral assets (both capital and revenue in some cases) Related to. Focusing on one specific example, the detailed business techniques, methods, and systems described below enable state or collateral-dependent property equity (and its related variants, including combinations with interest or rental yield). This is expected to allow households around the world to significantly reduce the initial cost of home ownership and release the capital currently associated with existing residences, in which case the loan entity The return rate obtained from is linked to the performance of the household property. These creditors then choose to sell such “equity finance” products into a tradeable form and sell them to secondary market investors, thereby doing so (Eg, residential property derivatives) can be developed.

  To avoid misunderstandings, the term “state or collateral dependency” as used herein in connection with financial contracts (even if legally classified as debt, equity or hybrid agreements) Means that it depends on the present value of collateral assets, such as residential properties, and future positive or negative changes in the market value of that asset (including both capital and yield components). Such state-dependent financial agreements do not currently exist in any universal form in industries such as the mortgage market, and the emergence of such financial agreements is worthy of being manageable by both constituents. It depends heavily on the development of systems, methods and technologies for asset selection, processing, servicing, securitization and portfolio management that can connect the consumer market side and the investor market side of the financial equation by making proposals. ing.

  To illustrate such a financial agreement, consider a young couple who has a home and wants to move to a $ 200,000 home that does not have much cash. If they don't have much savings and need to make a 90% loan, this means signing a standard interest rate mortgage of $ 180,000. If the interest rate is, for example, 7%, as is the case in many developed countries today, this young couple will have approximately 1,500 during the 30-year period of the loan if they want to pay off their debts absolutely. You will have to pay $ / month. As home property prices have risen over the past decade in many OECD countries, a significant number of low-income housing buyers do not have enough disposable income to pay deposits or interest on loans. And there is no adequate ongoing income to pay the principal. As a result, they have delayed the initial purchase of their homes and have had an uneasy prospect of living in rental housing for the time being.

  Consider another scenario in which the couple uses both standard mortgage loans and collateral-dependent forms of equity financing (ie, loans that do not involve interest rates, but that compensate lenders with exposure to underlying property gains and losses). Specifically, a financial institution will, for example, 20% of the value of its property in advance (ie 200,000) in exchange for the right to 40% of any possible increase in market value of the property and 20% of any decrease in value. Suppose we lend $ 40,000 of dollars). As a result, the couple only needs to fund $ 160,000 (ie $ 200,000 minus $ 40,000) here. Similarly, if the loan ratio is 90%, the mortgage loan amount is reduced by 20% from $ 180,000 to $ 144,000. With an interest rate of 7%, ongoing interest and principal payments are reduced from approximately $ 1,500 to $ 1,200 / month, so the required deposit is $ 20,000 to $ 16,000. Down to $ 000. The couple's mortgage loan ratio will drop from 90% to 72%, which will likely eliminate the need for mortgage insurance. In addition, when couples move to their homes (resulting in less debt repayment obligations), their disposable income increases, default risk decreases, and other residential assets where most of the savings are out of reach There is a possibility that their current assets at the time of retirement will increase substantially. Thus, the family may have previously been locked out of the homeownership market due to high prices, but buying property is now a much more realistic goal.

  As mentioned above, institutional investors are currently unable to utilize the risk-return profile of owner-occupied homes or to trade home equity in a well-distributed manner. This is particularly unfortunate given that residential property equity has performed very well over the years compared to stocks, bonds and cash, let alone its attractive “correlation” characteristics (ie Residential real estate goes in a very different direction from other investment categories, thus paving the way for valuable diversification gains). Ultimately, residential property is the largest asset class on the planet and may actually double the amount of both equity and fixed income, and recently developed by Economist magazine 50 Rated over US $ trillion.

  The most familiar alternative currently available to portfolio investors is the Real Estate Investment Trust (“REITS”). However, almost all REITs are based on inseparable commercial real estate, and those with residential exposure are constrained to the rental properties of a particular apartment group. Both the commercial and rental property markets are characterized by inherent risk-return dynamics and are the largest of all, a small percentage of the residential homes that are the most attractive investment categories in many respects. Only occupy.

  Therefore, the financial world needs to consider the above-mentioned equity financial mortgage securitization pool in a very positive way. Institutions are always looking for new categories of investments, especially those with a different return profile than stocks and bonds. Traditionally, this has allowed the agency to allocate substantial capital to private equity instruments and hedge funds, despite the high potential risks associated with these strategies. The owner-occupied residential property market is a good environment for seeking a huge new set of asset returns and some very attractive diversification opportunities. However, in order to convert owner-occupied residential real estate into a true investment class, it is first necessary to generate a basic financial agreement that will form the basis of a securitized investment pool. Furthermore, these agreements need to be satisfied from both consumer and investor perspectives. This is not a trivial task, and the absence of such a market today is a proof that the problem is awaiting. Even if the “optimal contracts” problem is solved (ie, this allows, for example, building long-term contract agreements between debtors and creditors), the identification, selection, Designing practical technologies and commercial processes that will successfully control management, processing, and servicing, as well as being able to transform highly specific personal assets into marketable forms of investment Securitization and ongoing portfolio management procedures need to be developed.

SUMMARY An integrated set of products, technologies and business systems that seek to collectively achieve the following two main objectives are disclosed. The first is to provide consumers with state-dependent financial products (ie, cost of capital is not related to any traditional time-dependent interest rates that may form part of the agreement, Related to positive and negative trends) in this case, typically in illiquid and extremely high-risk assets (eg owner-occupied housing) Part of the risks and returns associated with indivisible investment can be shared with an external third party. The second objective is to provide an external third party investor with access to a decentralized pool of assets so that it can provide cost effective exposure to the underlying investment class. This result is extremely difficult for such a third party to secure at present. As mentioned above, there are many social benefits that come from skillfully operating these new markets and bringing together independent consumer and investor customer bases to satisfy both demands and needs simultaneously. Is what attracts.

  One anticipated mechanism for developing such opportunities is due to the emergence of a new form of housing finance, described herein as equity financial mortgages (“EFM”), which is described above in “ It is substantially different from what was proposed in the report of the Prime Minister's Home Owner Task Force. EFM products are “hybrid” financial arrangements in the sense that they are legally categorized as debt (since they are based on standard mortgage agreements) and provide an economic payoff similar to equity investment in residential real estate, ie mortgage returns Is determined by formulas that depend on the economic trends (eg capital appreciation and / or depreciation) of the rented housing assets. Aspects of the invention described below include methods, articles not disclosed above, related to both EFM contracts and the myriad processes and systems that are required to actually make such contracts operational. Detailed technology and business system. However, these methods, products, technologies and business systems are equally applicable to any other form of financial agreement that has a “collateral dependent” payoff, and the following detailed description of EFM is limited. Not intended.

  The business system, technology and process described in FIG. 2 takes the form of five modular systems each controlled by an integrated computer system (shown as squares in FIG. 2), many of which are “asset targets, acquisitions” , "Servicing, securitization, and portfolio management system" and can function in a "real time" automated system that together form what will be referred to as the "integrated system" 600. As a result, this is typically monitored by a human operator known as a system administrator ("SM").

  As mentioned above, the main purpose of the integrated system 600 is to use EFM (here used as an example of a collateral-dependent financial agreement) to use finance or “underwrite” capital supplied by a third party investor. The distribution of the EFM to the consumer, and then individualizing the EFM into large pools or portfolios, which in some cases provide primitive financial capital. This is consistent with the preference of third-party investors. In connection with the latter, it is uncertain whether a third-party investor is the same entity that supplied the original financial capital, because the overall system 600 has a one or two stage capital allocation process. This is due to the fact that it is possible to deal with any of the above. In a one-stage embodiment, capital is procured from investors in advance and can be used to underline the distribution of EFM to consumers. When the capital runs out, the EFM is transferred to a portfolio held by the same entity that originally supplied the capital. Thus, such entities are also end-user investors. In a two-stage alternative, the overall system 600 incorporates a “broker” or “wholesaler” that provides short-term underwrite capital to enable distribution of EFM. However, when all of this capital is exhausted, the overall system 600 is consolidated into the EFM pool and then sold to a new investor class. The EFM's comprehensive portfolio share (eg, shared or unit) is then sold to a third party, and the original provider (ie, wholesaler) financial capital is repaid and compensated to supply brokerage services. The

  Thus, it can be seen that there are several different ways in which relationships between consumers and end-user investors can be established. This includes multiple parties on the financial side of this relationship: distributors (which may be mortgage banks), contractual lenders (ie “mortgage holders”), financial capital providers (eg, underwriters), And there may be a point of confusion because it is necessary to consider the existence of end user investors. In practice, the EFM distributor can be a major bank, but it does not hold the EFM on its balance sheet or work as a contract lender (the EFM distributor will perform this function in a certain period of time). Despite being very good to fulfill). In this application, a more likely scenario is that the contractual lender holds an EFM on behalf of either a financial capital provider (ie short-term underwriter) or an end-user investor (if there is no underwriter) It is expected that there will be a custodian or financial service management entity. Therefore, for the sake of simplicity, the terms “loaner”, “financial entity”, “synthetic equity provider”, “investor”, “mortgage holder” and “creditor” It can be used as such, or it can be used interchangeably with the understanding that it may be a separate entity that fulfills its overall purpose.

The overall system 600 and its associated database interactions, which are five independent but fully integrated systems, are summarized as follows.
1. "Target investment system" 100
The first role of the integrated system 600 is from its investment information provider (“IIP”) 101 to the end-user investor (ie the final retention of the EFM portfolio) such as the required portfolio level risk, return and correlation results. A number of different preferences of those who want to be, as well as the type of collateral asset (eg fully segregated property or apartment) and location (eg Sydney or Melbourne) that such investors want to be in the final EFM portfolio To collect. IIP 101 also provides other information regarding the future performance of the EFM portfolio, including historical, current and forecast data of macroeconomic, microeconomic, or property-related properties. This information is continuously updated in time series and input to the central electronic database (“investment information database” or “IID” 102). The IID 102 determines the characteristics of the “ideal” (ie, target) portfolio of the actual generated EFM portfolio in the target investment system (“TIS”) 100, not just for the need to record investor preferences ( Maintained for the primary purpose of providing the necessary input (e.g. by assigning portfolio weights to various geographies, property types, and consumer characteristics). The TIS 100 uses an electronic connection to extract the necessary information from the IID 102 and dynamically estimates the required portfolio elements and the overall attributes of the target EFM pool (through a series of TIS 100 built-in algorithms). They are then continuously updated as new information is entered into IID 102 over time. The output of TIS 100 is then sent by electronic feed to a target investment database (“TID”) 112 that is connected to an asset origination system (“AOS”) 200 via a real-time electronic interface. As explained below, AOS 200 uses its set of automatic decision rules to compare the investment characteristics of EFM applications with the ideal portfolio characteristics of TID 112, process these EFM applications in real time, and ultimately , Adapting the TID 112 attribute to the maximum extent possible to generate a final EFM pool that satisfies the end user investor preference. One ultimate role of TIS 100 is to respond to TID 112 with data collected from an investment mandate (“IM”) of asset management system (“AMS”) 500 and then dynamic updates of IID 102 output; The TID 112 provides its target portfolio characteristics to AMS 500 (also via an electronic connection between AMS 500 and TID 112). This allows AMS 500 to process its decision rules and take the necessary steps to ensure that the actual performance of the investment pools is as close as possible to the preferences of the various investors in these pools. Can do.

2. "Asset Origination System" 200
Utilizing real-time electronic connectivity to TID 112, asset origination database (“AOD” 202), and asset storage database (“AWD” 210), AOS 200 provides various static and dynamic feedback and feedforward decision rules. The EFM issuance to the end-user consumer is automatically managed through the sales agent (the mortgage market information provider or “MMIP” 201). Such a rule ensures that the actual characteristics of the EFM obtained from the consumer, in particular, both the collateral property (in this case residential property) and the consumer's own attributes are within an acceptable error range. To meet the ideal portfolio preferences of TID 112, which in turn ensures that an EFM realization pool is created that is acceptable to third-party investors. This involves establishing complex asset selection rules based on a wide range of geography, consumer, and property-related portfolio preferences that are accepted by MMIP 201 by EFM applicants (ie, consumers). Whether to be rejected or rejected substantially automatically in real time. In addition to such use of static and dynamic feedback and feedforward decision rules along with real-time electronic interfaces with TID 112, AOD 202, and AWD 210, AOS 200 also offers the possibility that AOS 200 will achieve its portfolio building objectives. It includes a dynamic MMIP 201 reward system that operates to further improve. Specifically, AOS 200 provides EFM distributors with the strongest possible motivation to issue contracts consistent with end-user preferences stored in TID 112, while responding to long-term observed performance To calibrate a dynamic MMIP201 reward strategy that improves the economic incentive of MMIP201.

  As a final task, AOS 200 will interact with the underwriting capital provider (“UCP” 211) and request a loan from UCP 211 once the EFM application has progressed and is officially approved according to AOS 200 decision rules. Manage the transfer of capital up to each successful applicant (via MMIP 201). The collateral provided by the applicant in exchange for a loan is the underlying financial agreement (in this case EFM), which is held by UCP 211 or a management intermediary in place of UCP 211. The characteristics of each EFM are as follows: during the shelf life (for example, if all required EFM is supplied and the last portfolio is closed, or in the case of a two-stage capital allocation process, the portfolio is securitized, or It is stored in the AWD 210 (until sold to a third party investor independent of the UCP 211).

  The AOD 202 normally supplies a wide range of input application data to the AOS 200 from the MMIP 201 that serves as an interface with the applicant (although not always in the Internet direct distribution model). The EFM application information supplied from the MMIP 201 is received by a real-time internet-based electronic interface or manually received in the AOD 202 by receiving a fax-based application form, and the applicant's characteristics (eg, age, current home address, occupation, income, Spouse relationship, 1st mortgage holder, credit record, previous ownership experience, etc., current or required housing attributes (eg location, price, method of purchase (auction or private sale), land area, land to housing ratio , Number of bedrooms, bathrooms, etc.) and specific variables of MMIP 201 (eg distributor type (mortgage broker or financial planner), corporate membership, geographical location, current reward structure, EFM distribution history, etc.). When the AOS 200 is electronically connected to the AOD 202 in real time and receives a transmission of EFM application data from the AOD 202, it provides this information to a series of static and dynamic feedback and feedforward decision rules. The dynamic decision rule includes a step in which the AOS 200 compares the application data with the portfolio preferences stored in the TID 112 in real time. If the application data has successfully progressed through all of the AOS 200 decision rules, the AOS 200 approves the application and determines the application price and specific conditions according to a series of algorithms. This information is then relayed back through the AOD 202 to the MMIP 201 that originally supplied the application. Once the transaction is determined, relevant data regarding the applicant, property type, MMIP 201 agent, and contract terms is sent from AOD 202 through AOS 200 to AWD 210 where all information regarding the officially approved EFM application is retained. The AWD 210 also captures additional data provided by the UCP 211, such as the amount of underwriting capital and the share of that capital drawn during the EFM distribution period. On the other hand, if the EFM application does not successfully pass the AOS 200 decision rule, the AOS 200 sends a rejection or inquiry signal to the MMIP 201 through the AOD 202. The AOS 200 stores all rejected and queried application data in the AOD 202 to continually refine its decision rules.

3. "Asset Securitization System" 400
An asset securitization system ("" when automatically determined by pre-specified parameters (eg when a specific value of EFM is procured or when a specific time period has passed) or when SM determines ASS ") 400 uses the real-time electronic interface with TID 112 and AWD 20 to update the investor preferences included in TID 112 with the characteristics of the actually procured EFM (these are over time as new information is entered into IID 102) (Remember that it is continuously refined). ASS 400 then processes a series of static and dynamic feedback and feedforward decision rules to include the generated EFM to best match the end user investor preference (stored in TID 112). Find out what measures, if any, will be required to optimize the structure of the investment pool. In the case of a simple one-step capital allocation process (the original provider of underwriting capital is the same investor intended to hold EFM assets for a long time), ASS 400 simply Calibrate the characteristics of existing investment pools held during the origination process. The generated EFM assets are sold to a third-party investor, possibly from a custody controlled by UCP211 (in this scenario will supply AOS200 underwriting capital on a relatively short-term brokerage basis). When moving to a large number of investment portfolios to become, ASS 400's more sophisticated building and optimization capabilities make leverage better. Hereinafter, the procedure in which the ASS 400 evaluates the EFM generation pool to determine the characteristics of the final investment pool will be referred to as a “securitization” process for ease of explanation. Upon completion of the securitization process, ASS 400 forwards all of the associated EFM contract data from AWD 210 and asset servicing database “ASservD”) 302 to asset management database (“AMD”) 502, which simultaneously Gather information from investment market information provider 501, ie, “IMIP” (eg, primary and secondary capital market participants such as stock brokers, investment analysts, and other capital market information providers). This latter series of information will include, but is not limited to, final pool registration, ongoing registration data, and second market transaction information such as pool price, volume, volatility and yield. At the same time, ASS 400 determines UCP 211 rewards via proceeds received from securitization events when holding EFM assets on a short-term brokerage basis.

4). "Asset servicing system" 300
There may be a significant period of time (eg, over 12 months) between the date when the EFM was first distributed to the consumer and the date when it was finally securitized. During this entire period and during the EFM contract period, the asset servicing system (“ASServS”) 300 is responsible for all of the management requirements of the EFM contract, and the request is external to the asset servicing information provider (“ASIP”) 301. Entrusted. These management requirements include, among other things, contract term changes, non-performance events, prepayments, property repairs, repayments, refinancing of related contracts (eg, first-rate mortgages), and end-user investments after contract termination Includes cash flow processing to home. Any data regarding the EFM contract servicing event is electronically entered by the ASIP 301 into the asset servicing database ("ASservD") 302, and then the details are relayed to the AServS 300 via its electronic interface. Next, the AServS 300 is electronic to both the AWD 210 during the retention period and the AMD 502 when the EFM is securitized to manage ongoing EFM servicing requests for both securitized and non-securitized EFMs. To interact. The AServS 300 also interfaces indirectly with the AOS 200 via the AservD 302 to help manage the ongoing reward AOS 200 of the MMIP 201 during the EFM loan period.

5. "Asset Management System" 500
After securitization, the asset management system (“AMS”) 500 uses a series of static and dynamic feedback and feedforward decision rules to determine the risk and return characteristics of listed and unlisted securitized EFM pools (with AMD 502). Monitoring (via electronic connections) to ensure that trends and performance are in line with the investor expectations of these pools, as defined by data and information collected electronically from both IID 102 and TID 112 To.

  After extracting the data from AMD 502, IID 102, and TID 112 and processing this through its decision rules, AMS 500 sets the terms of the EFM contract on which the pool is based (for example, to encourage specific consumer actions), among others. ) If so, ask how it needs to change. If AMS 500 determines (based on its rules) that the duration of the contract on which the pool is based needs to be changed, these changes will be electronically signaled to AServS 300 through AservD, Make the requested changes and inform AMD 502 of the results. As an example, a household in a particular location, such as North Sydney, does not give up its EFM for a much longer period than originally expected when selling the pool to investors, resulting in a smaller pool of cash flow. In the event that such an investor is damaged, the AMS 500 instructs the AServS 300 to reduce the cost of EFM in the area for a limited period and encourages the repayment rate to increase. Can do. Alternatively, in the case of an investment pool that is unlimited with respect to EFM's new tranches that are continuously delivered over time, how the AMS 500 works with every additional tranche of assets to optimize the pool's future performance. Will need to be corrected. If changes are deemed necessary, the AMS 500 electrically signals these changes to the TIS 100 via the IID 102 to take action on the AOS 200 and ultimately the configuration of the EFM supplied by MMIP. Will be affected.

  FIG. 2 shows a schematic diagram of the central end-to-end applicant-investor composite technology system and process of the overall system 600. A detailed description of the individual systems 100-500 is left to the next section of this application. Note that although these systems (and corresponding processes) are related, each individual system serves a separate commercial purpose and can therefore be deployed independently. That is, the techniques disclosed herein can be developed sequentially with the modular components of the overall system 600 operating as an independent technical architecture.

The data processing capabilities and technical structure of the overall system 600 can be distinguished in several different ways from prior art mortgage origination and securitization systems.
First, the overall system 600 integrates electronically on an end-to-end basis the otherwise independent mortgage identification, screening, selection, processing, securitization, servicing, and ongoing portfolio management system requirements. These are divided in the prior art into independent utilities that normally do not interact with each other.

  Second, the integrated system 600 identifies, screens, selects, securitizes and services (real-time automated) to identify classes of financial agreements that provide fundamentally different risks and return payoffs from those associated with prior art mortgage securities. (Using decision rules). In particular, prior art forms of interest-bearing finance (eg, mortgages) obtain returns sought by fixed or variable time-dependent interest rates. Accordingly, the cash flow provided by these contracts is quite different from the return obtained with secured collateral (ie, residential real estate). In contrast, an EFM is a contract that compensates a financer with the right to future changes in the value of the underlying asset that has been used as collateral. Thus, the cost of capital to the consumer is not exclusively time-dependent as in the prior art mortgage market, but depends on the future positive and negative price-to-performance ratio of the property in question. That is, the capital cost of EFM is “state or collateral dependency”. Thus, although prior art mortgage origination and securitization systems are almost completely independent of the inherent characteristics of the residential assets being loaned (especially when mortgage insurance exists), This is a profit-generating area (because the attributes of collateral assets themselves have a primary impact on the performance of financial agreements).

  Third, the individual return rates attributed to state-dependent financial agreements that include EFM portfolios are not essentially homogeneous, and the interest rates attributed to the individual mortgages that make up the standard mortgage pool are homogeneous. As mentioned above, the Australian Federal Bank can distribute mortgages with variable interest rates, for example worth $ 250 million, in any given month, all with exactly the same interest rates. . In this situation, the Australian Bank is somewhat ambiguous with regard to the geographical area and residence type in which the mortgage is issued. The Australian Bank can then elect to securitize these mortgages and sell them to investors around the world, who have all the assets that serve as collateral if the products are of homogeneous nature. Becomes totally independent in terms of both geographical location and physical characteristics. In comparison, a state-dependent EFM worth $ 250 million will result in a highly specific pool of assets, each with a significantly different expected return rate. In addition, the geographic area and residence type issuing EFM will have a strong impact on the expected performance of the portfolio (not to mention that these represent claims for Australian residential real estate, It can be done in a very different way from the real estate market and therefore may not be of interest to foreign investors). As a result, there is a need for identifying, selecting, selecting, securitizing, servicing, and managing portfolios such as EFM in a much more sophisticated manner than is done in the prior art mortgage market. This need is met using techniques that dynamically adjust the asset selection process over time. By way of illustration, the Australian Bank of Australia can be considered acceptable to issue Western Sydney's $ 250 million mortgage, but an investor in a $ 250 million EFM pool All of these assets located in a concentrated geographic area may not be considered acceptable.

  Fourth (as a result of the third point), the overall system 600 uses a broad set of static and dynamic feedback and feedforward decision rules to follow the target portfolio preferences of third-party investors, Control distribution of EFM in series. The main purpose of the overall system 600 is that the attributes of the EFM approval pool match what the end-user investor wants (the desire is expressed by using an “ideal” or target investment portfolio). Is to maximize the possibility of becoming. As noted above, the return to EFM depends on the performance of highly heterogeneous aggregates (ie residential real estate), so the process of selecting and selecting these assets is the traditional bank's prior art interest rate mortgage contract. Is significantly more complex than the method of issuing

  As a final point of differentiation, the overall system 600 is intended to minimize the observed differences between pool performance and end-user investor preferences, with static and dynamic feedback and feedforward decision rules and Includes an integrated asset management system that uses process control systems to automatically modify the terms of the underlying financial agreement and the characteristics of future tranches of assets added to the pool. It includes an asset management system, various memory banks that store information about pool performance and investor requirements, target portfolio generation, selection of underlying assets, and timelines of these assets. Rely on an integrated electronic interface with other critical control systems to manage servicing.

Description of individual aspects State Dependent Financial Agreements The following is a description of one or more embodiments of EFM.
In accordance with one embodiment of the EFM, creditors can use a percentage (eg, 20%) of the total value of their collateral assets (eg, property in their owners) on a zero interest basis in exchange for the following final repayment: %)) To offer consumers a loan equal to.
(1) Loan principal (2) Positive right to preset share of all capital appreciation of collateral assets (eg 40%)
(3) Negative right to preset share of all capital depreciation related to collateral assets In this case, the total amount of borrowings in EFM is determined at the date of contract cancellation or repayment, which will be specified in the financial documents. Can occur when the asset in question is sold or when the borrower is elected.

  For the purpose of this explanation, the proportion of the loan provided by the creditor (ie the loan principal as a percentage of the value of the collateral asset at the time of the loan extension) and the share of future capital appreciation or depreciation of the collateral asset The mathematical relationship between creditor rights (whichever is ultimately related as of the contract termination date of the total EFM borrowing) can be expressed as the ratio X: Y: Z, where , X represents the proportional value of the loan provided by the creditor, Y represents the creditor's right to any future capital appreciation of the collateral asset and is called the ratio of the value of the total capital appreciation of the collateral asset , Z represents the creditor's right to any future capital depreciation of the collateral asset and is called the ratio of the value of the total capital depreciation of the collateral asset.

Thus, an EFM “capital cost” of 1: 2: 1 would be 2 percent of all future capital appreciation and 1 percent of all future capital depreciation at every percent of the loan provided by the creditor. It shows that it gives rights. However, a more sophisticated representation of this general case, in particular, a proxy for time-varying claims to capital appreciation Y or capital depreciation Z for collateral assets and / or time-dependent interest rates or estimated income yields for collateral assets. It should be noted that expressions incorporating agreements involving values (combined capital and income returns will represent the economic effect of the sum of the assets in question) are easily recalled by those skilled in the art. By way of illustration, the following alternative forms of EFM capital costs can be developed substantially, but these do not represent a complete population that could be handled by one skilled in the art.
(1) 1: 1: 1 EFM capital cost;
(2) EFM capital cost of 1: 1: 0;
(3) EFM capital cost of 1: 1.5: 0;
(4) 1: 2: 1 EFM capital cost;
(5) EFM capital cost of 1: 2: 2.
(6) 1: 2: 0 EFM capital cost;
(7) EFM capital cost of 1: 3: 1;
(8) EFM capital cost of 1: 3: 2;
(9) 1: 3: 3 EFM capital cost;
(10) EFM capital cost of 1: 3: 0; or (11) any one of the above combined with a standard time dependent interest rate or rental yield proxy value

  One important impact of the state-dependent nature of EFM's cost of capital is that it can lead to unforeseen circumstances, which can result in negligible, zero, or negative amounts of this form of loan cost to borrowers over time. To be either. For example, if the value of the borrower's collateral assets is not high as of the contract termination date, the borrower simply provides the original loan provided by the creditor on the date the borrower contracts with the EFM agreement without adding interest costs. You will pay the amount. EFM was therefore a free form of financing. In another example, if the value of the borrower's collateral asset has declined at the date of contract termination, the creditor expects some of these capital losses and needs the value of the original loan amount. Can be lowered accordingly. This leads to a completely unique situation with no known precedents in the prior art, which makes the EFM financial cost for the borrower negative, ie there is a value transfer from the creditor to the borrower. There is no current form of housing finance that incorporates such a function and that can lead to frequent and unforeseen circumstances, in which the financial cost to the borrower is actually negative.

For purposes of explanation, it is assumed that all EFMs with a capital cost of 1: 2: 1 are used hereinafter. Other features of the EFM contract include, but are not limited to:
(1) The borrower's obligation to cancel the EFM contract is due to any one of property transfer or recovery, owner death, loan n-year anniversary, implementation of new prepayment terms, or non-performance event Triggered.
(2) The EFM can be “prepaid” (ie without selling the property) at any point during the potential n-year period of the contract (this situation triggers the EFM binary switchover). This then brings the cost of capital back to the “1: 2: 0” ratio rule, where the creditor does not have to share any capital loss of the underlying property). As explained below, this binary switching of EFM capital costs is an important mechanism for suppressing negative “gaming” outcomes, and more generally “reverse selection”, that is contrary to consumer expectations. is there.
(3) The consumer legally owns 100% of the equity of its collateral assets and retains the same rights and freedoms as possessed by standard prior art mortgage products.
(4) The EFM is secured by a mortgage on the collateral assets or by a second mortgage that can be independently included with the “subordinated” EFM when the borrower acquires a standard interest rate mortgage.
(5) The borrower receives a credit on the date of EFM's valve contract cancellation for any increase in the value of the collateral assets resulting from the borrower making an improvement that is considered to be capital expenditure assessed independently during the contract period. Improvement clause that can be. As with the prepayment clause, this refinement procedure is described in detail below.
(6) The specific conditions of the EFM contract can be calibrated to generate an investment return that satisfies the requirements of external third party investors in the decentralized pool of such contracts.

  The last key feature of EFM contracts is that the borrower's return on investment (ie, the future performance of the collateral assets) closely matches the return of the creditors and, where appropriate, the investor's return on the diversified pool of these contracts. That is. A more detailed description of the contract contemplated by EFM is given below.

1.1 Consumer Value Proposition In the residential market, demand for EFM is expected in three main consumer categories with various value propositions:
(1) (a) the first buyer who wants to purchase property, (b) wants to reduce initial costs, or (c) wants to purchase more expensive housing;
(2) (a) an existing homeowner who wants to refinance his current mortgage to reduce ongoing mortgage repayment, or (b) wants to upgrade to a more expensive home;
(3) Elderly people who want to use an equity release mechanism other than reverse mortgage but have a wealth of assets but poor income.

  The EFM creditor is bundled with the total loan used by the borrower (eg, subordinated or otherwise equidistant EFM) to ensure that the borrower has a significant financial investment in the collateral assets at the time the loan is made. (Including both first-rate mortgages).

  EFM needs to prove to be an attractive form of housing finance for consumers. Table 1 shows two alternative scenarios where consumers use EFM in combination with traditional mortgage property financing (“Conventional Scenario 1”) and standard form of interest-based financing (“Conventional + EFM Scenario 2”). And “conventional + EFM scenario 3”).

Table 1
Traditional housing finance compared to EFM usage

In EFM scenario 2, the consumer uses EFM to reduce its first mortgage amount from $ 450,000 to $ 360,000. In this scenario, the consumer should benefit in several ways:
(1) The amount of deposit required for the first mortgage is reduced by 20% (from $ 50,000 to $ 40,000).
(2) As a result of the reduction in the amount of the first mortgage, the amount of ongoing interest and principal repayment over the remaining n years of conventional mortgages (from $ 3,000 / month to $ 2,400 / month) ) 20% lower.
(3) When the value of the first mortgage falls to 72% of the property value below the level where LMI is required in other cases (ie 80%), the need for lender mortgage insurance (“LMI”) is completely eliminated Eliminate (down from $ 6,750 to $ 0).

  In EFM scenario 3, a consumer purchases a higher value home using EFM. In this example, the household can purchase a home that is 25% more valuable than the traditional Scenario 1 home for the same prepaid and ongoing monthly cash costs.

1.2 EFM Payoff The following example shows a simplified payoff associated with a $ 100,000 EFM used to finance various prices obtained at the time of sale to a $ 500,000 property. Table 2 clarifies the total cash flow for creditors.

Table 2
Example showing EFM payoff

1.3 Major EFM conditions In the residential market, most of the conditions of EFM contracts can be based on standard mortgage contracts from the prior art. The total EFM borrowing is payable by the mortgage holder on the date the loan contract is terminated (eg, by selling the property or repayment without selling it). The total borrowing is determined either by the amount of the competing transaction (eg, auction or individual trade treaty) or by an independent fair market valuation performed by a price assessor (eg, a price assessor approved by the creditor) Is done. In one embodiment of the EFM, the creditor has the right to accept the transaction amount or request an independent market valuation and, if there is a difference, based on the independent price assessor's assessment estimate. If the borrower does not accept the assessed value, another independent market valuation may be required, in which case the property value is either at the midpoint of the two valuations or at the transaction price (at the creditor's choice). Will be. Creditors also have the option of looking for another value. If this is done, the property value can be the two closest midpoints of all valuations. Other variations will be apparent to those skilled in the art.

Other important features of the preferred EFM contract include:
(1) Improvement clause (2) Refinancing clause (3) Prepayment clause

1.3.1 Rehabilitation clauses EFM contracts preferably incorporate an improvement clause that allows the borrower to improve the value of the asset and to be credited for the rehabilitation of collateral assets made with creditors' consent. Borrowers can seek credit for property improvements subject to the following conditions:
(1) There is a minimum authorized expenditure for improvement as appropriate determined at the discretion of the creditor (this can be a fixed amount (eg $ 20,000) and can be affected by price slides as appropriate).
(2) The approved independent price assessor will initiate a fair market assessment of the property both at the date of repair commencement and at the date of completion.
(3) Restoration will be completed within a specified number of months from the date of commencement (or longer if creditors approve).
(4) The second evaluation value determines the incremental value resulting from the repair. Incremental value is calculated as the difference between the property value before and after the improvement.
(5) Incremental value resulting from rehabilitation is recorded on the borrower's credit when the total contracts borrowed by EFM are terminated.
(6) The credit for rehabilitation shall be the value at the time when the property value at the time of sale (including the value of any improvement recorded in the credit) is initially loaned the EFM loan amount when the contract of the total amount borrowed by EFM is terminated. The amount of borrowing is only reduced to a greater extent than property value (ie, repair clauses can be used to create a situation where lenders share losses through a “1: 2: 1” rule or similar rule. Can not).

1.3.2. Refinancing clauses Borrowers can refinance any prior or “equal” mortgage that ranks higher than EFM or equal to EMF, subject to conditions including:
(1) One of the creditor's approved independent price assessors is required to begin a fair market assessment of property.
(2) Refinancing must be one of the approved rosters of creditors related to the prior lender.
(3) Regardless of which is large, refinancing is based on the assumption that the total outstanding interest-bearing debt at the time of refinancing, or the property was sold at a certain percentage of the refinancing value, regardless of which is large Do not exceed the larger of the percentages of valuation (for example 85%) minus any amount borrowed at EFM calculated at the time of refinancing.

1.3.3. Prepayment clauses Borrowers prepay all the amount borrowed at EFM while owning and occupying property, and in one embodiment, not all, subject to the conditions including: can do.
(1) One of the creditors' approved independent price assessors is required to begin a fair market assessment of property as of the prepayment date.
(2) The borrower may have to redeem the entire amount borrowed at EFM in advance. Thus, the amount borrowed at EFM may not be partially redeemable, but this can be made acceptable in the contract.
(3) Most importantly, if the creditor determines that the property value of the borrower at the time of contract cancellation is less than the property value of the day on which the EFM loan amount was initially loaned, Does not share any capital loss.

  When the collateral assets are depreciated at the prepayment date by the borrower, the binary switching of the capital cost of the EFM contract from the 1: 2: 1 ratio to the 1: 2: 0 ratio can be managed successfully. It is important to Specifically, it protects creditors from situations where the borrower attempts to prepay the EFM against the creditor's economic loss (ie, the situation where the value of the collateral asset is reduced and thus the EFM capital cost is negative). Without this binary switching, EFM borrowers can systematically time their contract cancellation dates to coincide with the decline in the housing market, ie the period of negative collateral asset performance. This will result in the next best creditor return. A more detailed explanation of all the mechanisms of the above clause is provided in Appendix 3, which includes an example of a complete EFM contract of the preferred embodiment.

1.4 Preferential Agreements Whenever there is a mortgage that ranks ahead of EFM, one feature of the agreement disclosed herein is to provide loans to EFM creditors and borrowers in conjunction with EFM A contract with any other independent creditor, which regulates the respective rights of the creditor. As far as practicable, EFM creditors will always include capping the priority of any prior creditor (ie, the provider of interest mortgages ranked in the pre-bundle bundled with EFM), It calls for a contract to protect that right.

2. Target investment system (“TIS” 100)
The modular chain of integrated technology integrated system 600 begins with TIS100. In the most basic embodiment, TIS 100 uses a sophisticated investment algorithm to provide core data that is electronically derived from IID 102 (this data was originally entered into IID 102 based on information supplied from IIP 101). Is a system that continuously generates an “ideal” or target investment pool characteristic that is electronically output to the TID 112. This electronic output will typically include a matrix of economic preferences in a spreadsheet-like format that describes the attributes of the target portfolio with a very high degree of quantitative analysis. For example, the output of TIS 100 quantifies the exact target portfolio weights for state-dependent financial contracts (ie EFM) down to very small geographic units such as local governments, while at the same time, for example, geographic units And the maximum and minimum allowable EFM investment thresholds can be defined subject to both the residence type. After receiving the transmission from TIS 100, TID 112 stores this data in the TID storage device so that it can be electronically retrieved by AOS 200 in real time to process AOS-owned decision rules. it can.

  Raw economic and financial data (such as listed and unlisted pool valuations or intermediate property prices for postal codes throughout Australia) continuously entered into IID 102 is collected manually through physical contact with IIP 101 Or collected electronically through the Internet or other computer-based integrated network (eg, a Bloomberg terminal or a real-time feed from a property information provider) linking the integrated system 600 with the IIP. Among other components, IIP is: (i) potential investors in the EFM pool; (ii) SM; (iii) UCP 211; (iv) investors in the current EFM pool; and (v) direct data. Announced suppliers can be included.

(I) Potential investors The nature of the information entered into IID 102 by potential investors may require pre-selections regarding the portfolio characteristics they prefer. For example, IID102 allows potential investors to: (1) “passive” EFM portfolio exposures that offer holdings of well-distributed property assets that reflect broad real estate market performance; or (2) TIS100 An “active” EFM portfolio exposure can be selected that will generate an aggressive investment target that is reasonably high risk but results in a high gross return. A prospective investor can also present a favorable dollar value commitment for a given EFM pool, which can affect the amount of assets that AOS 200 chooses to accept or reject. In this regard, IID 102 has the ability to store both indicative (ie non-binding) and legally binding instructions related to a prospective investor's financial exposure to a given EFM pool. Have.

  Providing passive investment services is a business that is traditionally less expensive than the costs associated with providing a more sophisticated and active investment strategy, and the investor's choice in this regard is to provide an IID at the completion of the preference input process. This will affect commissions, which are indicators estimated for investors. TIS100 generates individually customized target EFM portfolios for individual investors such as annuity plans (these investors can entrust a large amount of capital to ensure such customization If), it should be emphasized that it has the ability to simply aggregate the input investor preferences stored in IID 102 and calculate the best portfolio performance that satisfies the maximum number of potential investors. The former customized alternative is often referred to as a “mandate” in the investment industry, where portfolio managers fully match the strategy they use with the customer's custom requirements. As such, a large amount of customer capital will be invested individually on a non-pool basis.

To illustrate the potential idiosyncrasies of the EFM pool management options outlined above, the TIS 100 creates a range of “passive” portfolios to investors via the IID 102, for example, generating the following: A method can be proposed.
(1) EFM investment pool weighted either by value or quantity depending on the geographical location of the underlying residential property (eg, by state, by city, depending on the granularity of the geographical description desired by TIS100 Or by postal code). Thus, the target portfolio generated by TIS100 is an EFM weight that reflects the weighted distribution of the value or quantity of residential property across Australia with an associated geographic identifier (where quantity is the absolute number of assets or Can be defined by any of the liquidity of the transaction). For example, if 40% of all residential property is located in Sydney on a value basis (ie, the total number of dwellings multiplied by the current price of these dwellings), TIS 100 is subject to upper and lower permissible thresholds. Set the target EFM weight for Sydney to 40%. These tolerance thresholds are then parameterized (eg, using Monte Carlo or a similar method) through random statistical simulation performed by TIS 100, so that the EFM pool is deducted from the target portfolio weight before significant changes occur in its performance. Determine what fluctuations can be accepted.
(2) EFM investment pool weighted by value or quantity by both the type of residence and geography. For example, when an investor wants to ensure both a legitimate geographic exposure and a legitimate property structure. In this case, TIS 100 quantifies the value-weighted distribution of all residential types subject to its location, thus providing a two-dimensional target portfolio weight that specifies both the required geographical and residential type capital allocation. .
(3) Residential type, geographic location, and EFM investment pool weighted by value or quantity, for example by a consumer cohort that exists at the same time. This presents an even higher level portfolio building solution that allows TIS 100 to make all residential types based on its location and the type of consumer that resides in these properties (eg first buyer, upgrader) , And retired) distribution to generate a three-dimensional value or quantity weighted portfolio construction target.

  The purpose of the passive TIS 100 weighting system identified above is simply to provide investors with a portfolio of EFM that most closely approximates the characteristics of a wide range of residential real estate markets and thus minimizes the so-called “interlocking error”. “Linked error” is a metric used in the money management industry to quantify the divergence of a passive portfolio from the benchmark of its selected asset class. Detailed information describing each suboption is provided by a person, by phone, or through the order page of the associated EFM pool on the IID 102 computer-based interface.

  The portfolio management fee, which is an index estimated by the TIS 100 through the IID 102 in order to provide such an investment service, is determined according to the selection made. When each investor's initial “portfolio request” is completed, an automated message is sent to the investor via email giving a preliminary overview of the proposed portfolio construction method and management fee structure.

Potential investors who want to benefit from an active EFM pool are required to present more detailed information to IID 102. These participants can select one or more of the following services, and their execution is carefully managed by the TIS 100 and AOS 200 as described in detail below (the list below is exhaustive): Is not intended to be
(1) The investor 191 sends its geographic portfolio construction preference (eg, having a high or low weight for a particular city of government) to the TIS 100 through the IID 102.
(2) The investor 191 sends a preference for building a portfolio of its residence type (for example, having a high or low weight for a property type such as a detached house) to the TIS 100 through the IID 102.
(3) Investor 191 may include, but is not limited to, the size of the property, the property's land-to-house ratio, the number of property's bedrooms, the property's sales organization (eg, auction vs. individual treaty trading), the number of property's bathrooms, the residence A portfolio-building preference based on a variety of other consumer and property-related characteristics, including the age, income, credit record or cohort of the buyer (eg first buyer, existing owner, or retired) Send through IID102.
(4) Investors 191 make their preferences for the overall system 600 to minimize EFM pool portfolio risk (ie, expected future volatility), subject to the investor's pre-specified preferred return level. It transmits to TIS100 through IID102.
(5) The investor 191 sends their preference to maximize the portfolio return of the EFM pool to the TIS 100 through the IID 102, subject to the preferred risk level specified by the investor in advance.
(6) The investor 191 sends information about its existing portfolio allocation to, for example, stocks, bonds, cash and other types of real estate (eg, commercial or industrial) through the IID 102 to the integrated system 600 Added an average / variance “efficient” exposure to EFM (which can limit the investor's allowable EFM pool allocation by the maximum or minimum required by the self-internal investment mandate, In an environment, these distributions are not limited), and in addition to the method policies discussed in points (4) and (5) above, the investor's preferred total portfolio risk or return level (ie, their asset class (Over all of the possessed property) Requesting to optimize the portfolio holdings.
(7) Alternatively, the investor 191 sends preferences to the TIS 100 through the IID 102 for the integrated system 600 to build an EFM portfolio according to the TIS 100's unique investment method, and the exact mechanism of that method is kept confidential and disclosed to the investor. It will never be done.
(8) Any combination of one or more of the above.

  The purpose of the active TIS100 portfolio building system outlined above is to process the EFM exposure that most closely approximates the preferences delivered by investors. Detailed information describing each suboption is provided by a person, by phone, or through the order page of the associated EFM pool on the IID 102 computer-based interface.

  The portfolio management fee, which is an index estimated by the TIS 100 through the IID 102 in order to provide such an investment service, is determined according to the selection made. When each investor's initial “portfolio request” is completed, an automated message is sent to the investor via email giving a preliminary overview of the proposed portfolio construction method and management fee structure.

At this point in the process, prospective investors can also be provided with the ability to further strengthen the portfolio and indicate various other preferences regarding the management of their ongoing capital commitments. Such additional items are provided in a manner similar to that outlined above and include, but are not limited to:
(1) Whether investors prefer absolute or relative taxation on non-capital gains (or vice versa) (in most cases, simply the effectiveness associated with each other based on the investor's personal circumstances) (Given by presenting the tax rate);
(2) Whether the investor has a preference for returns in the form of yield or capital appreciation (ie cash allocation from the EFM pool) and all such preference characteristics, for reasons other than taxation;
(3) Based on points (1) and (2) above and other possible considerations, the investor may share the revenue and capital cash flow allocation provided by the EFM pool with the same EFM pool or other aggregate Whether it wishes to “reinvest” in the investment vehicle managed by the system 600 or, if this is not the investor's preference, the investor wants to fully allocate to the chosen account;
(4) Investors regularly introduce new EFM “tranches” to further diversify their exposure to EFM, thereby increasing the number of assets investors use through the pool over time. Whether you prefer to increase.
It is noted that investors 191 who have entered preferences in IID 102 in this way will have strong practical knowledge about the meaning of the terms used above and their application to investment holdings. I want.

(Ii) System administrator (“SM”)
The SM has the ability to enter information into the IID at its discretion. There are several reasons why it is necessary to do this in terms of the overall system 600 function as a whole. For example, corrective action may be taken if the behavior of the EFM pool does not match the investor's preferences as a result of some unintended circumstances that AMS 500 did not anticipate in advance, and therefore is not provided by its decision rules. May be necessary. Such feedback is provided by the electronic communication link between AMS 500, IID 102 and TID 112 of FIG.

(Iii) Underwriting capital provider (UCP211)
When their services are needed, UCP 211 provides short-term custody and allows EOS to be allocated by AOS 200 prior to securitization by ASS 300 and final repayment of UCP 211 funds. These entities also have the ability to enter their preferences into IID 102. Thus, they can have a strong impact on the TIS100 computer target to prevent EFM origination (through AOS 200) not ready to hold prior to securitization. The UCP 211 can also present both “positive” and “negative” preferences to the IID 102. Positive preferences include favorable characteristics (eg, geography, residence type, consumer cohort) associated with any underlying EFM that is prepared for holding, while negative preferences are EFM attributes that should not be originated through AOS 200 Is transmitted to TIS100. Thus, negative preferences form an important component of TID 112 that gives a list of properties that cannot flow to AWD 210.

(Iv) Current Investor The current investor is the penultimate category of IIP 101 that enters information into IID 102. The integrated system 600 manages these transmissions based on both discretion and automatic electronics via the AMS 500 described below. In simple terms, much of the output generated by AMS 500 reflects the results of its automatic decision rule analysis (using the data supplied by AMD 502 and TID 112), and AMS is based on the preferences of existing investors. And dynamically monitor the difference between the actual performance of the EFM pool. Based on the results of the decision rule analysis of AMS 500, the AMS electronically feeds back new information to IID 102 to correct any unintended portfolio asymmetry that is found to exist at a given time. Support. That is, the AMS 500 provides a feedback control loop to the IID 102, and thus the TIS 100, TID 112, and finally to the AOS 200, affecting the asset selection rules controlled by the AOS 200 (also discussed below), and investor preferences and Make EFM pool performance more closely aligned.

(V) Direct Data Announcement Supplier The last class of IIP 101 that inputs information to IID 102 is the direct data announcement provider. These entities have an electronic connection to the IID 102 that sends regular batch or real-time information updates on core data critical to the TIS 100 portfolio generation procedure. These entities include, but are not limited to, financial market information providers such as Bloomberg or Reuters, Government Statistics Bureau, Credit Information Center and Mortgage Insurers, and Real Estate Market Information Providers.

1.1 Index TIS100 Portfolio Generation Procedure As described above, the TIS100 is output to the TID 112 and is the target or ideal EFM that constitutes an important input to the AOS 200 decision-making process when trying to supply EFM assets. Responsible for calculating portfolios electronically. The TIS 100 can generate multiple target portfolios based on information that is electronically derived from the IID 102. These target portfolios will affect the properties of the new EFM tranches that EIS is supplying for AIS200 to create and deploy to existing EFM pools that TIS100 manages by AMS500 In addition to the target portfolio to become, it relates to both new EFM pools that need to be configured to satisfy the preferences of a new class of investors. In view of the above, the input to TIS 100 and the output it generates will depend on the nature of the target portfolio.

  After electronically extracting the necessary data from IID 102, TIS 100 continues several key steps in time series to ensure that multiple target portfolios contained within TID 112 are up-to-date. Start. Non-limiting examples of these stages of architecture are described below.

Portfolio construction stage as index 1:
TIS 100 aggregates the investment preferences that exist at all the same time stored in IID 102. These include the requirements of input active and passive EFM portfolios, as well as so-called “expert” investment mandates that reflect specific investor portfolio preferences.

Target portfolio construction stage 2 as index:
Based on the aggregation outlined in Stage 1, the TIS 100 quantitatively calculates multiple EFM target portfolios (additional core economic, financial, demographic, and other requirements derived electronically from IID 102 Using various data), applying the various portfolio optimization methods outlined below, the “utility” or economic satisfaction of various classes of investors whose target portfolio communicated investor preferences to IID 102 To maximize.

Target portfolio construction stage 3 as index:
When calculating the characteristics of the target portfolio, TIS100 performs advanced statistical simulations (eg, using methods such as Monte Carlo) on the effects of extensive artificial or irregular deviations from these target estimates, Seek this impact of expected performance. After completion of these simulations, the TIS 100 determines a maximum and minimum acceptable portfolio tolerance threshold for a set of AOS 200 control attributes (eg, pool exposure to different geographic regions, residence types, and consumer characteristics). Appendix 1 includes an extract from examples of computer programming code used to perform such portfolio simulations.

Stage 4: Build target portfolio as an indicator:
The TIS 100 electronically outputs to the TID 112 the unique characteristics of the target EFM pool and acceptable tolerance thresholds in the form of a highly detailed matrix that quantifies the preferred attributes of the EFM pool to a high degree of analysis. Examples of TIS 100 target portfolio output are included in Appendix 2. TIS 100 can repeat steps 1 through 4 very quickly, thereby providing TID 112 with updates within the day as needed.

  As mentioned above, TIS 100 uses a number of advanced algorithms (eg, nonlinear, low gradient optimization, Monte Carlo and bootstrap simulation, neural networks) to calculate target EFM portfolio characteristics that most closely approximate investor preferences. Network and other econometric techniques). In the next section, some representative specific portfolio building methods are disclosed. TIS 100 uses these to calculate the target portfolio output and send it to TID 112 based on the input provided by IID 102.

The passive portfolio construction process weighted by the 1D, 2D, and 3D values and quantities of the TIS 100 discussed above is typically based on an estimate of the “price” of the asset that contains the portfolio. . However, assuming that the collateral assets underlying the EFM agreement are usually very illiquid (ie they are bought and sold individually at random times), at any point in time, a reliable proxy value for these prices is It may be extremely difficult to obtain. Thus, when building a passive portfolio, TIS 100 uses several different surrogate values for individual asset prices in a given jurisdiction (hereinafter referred to as statistical local or “SLA”). Use. Among other metrics, these measures include, but are not limited to:
(1) Intermediate price for the quarter immediately preceding the asset;
(2) Average median price for the last four quarters of the asset;
(3) Weighted intermediate price of the average amount for the previous four quarters of the asset

式中、Ｍｅｄｉａｎ Ｐｒｉｃｅは、時間ｔでのＳＬＡ₁の中間価格であり、Ｔｏｔａｌ Ｄｗｅｌｌｉｎｇｓ₂₀₀₁は、２００１年の一戸建て住宅、二戸１棟住宅、及びテラスハウス、ユニット又はフラット、及び他の建築物と連棟となった住宅又はユニットの合計として定義することができ、Ｓａｌｅは、時間期間ｔにＳＬＡ_iで売却された住居の数である。 The TIS 100 can construct a passive value weighted EFM portfolio estimate using the following equations that correspond in time to the three asset price surrogate values disclosed above.

Where Median Price is the median price of SLA ₁ at time t, and Total Dwellings ₂₀₀₁ is a single-family house, two-family house, and terraced house, unit or flat, and other buildings in 2001. It can be defined as the sum of houses or units that have become ridges, and Sale is the number of houses sold on SLA _i in time period t.

  The TIS 100 can use several different “active” portfolio construction processes. One alternative is for the TIS 100 to ignore the investor's other asset holdings (eg stocks, bonds and cash) and simply optimize the target weight of the EFM pool based on the underlying asset's risk and return attributes. is there. This involves, among other things, using various EFM weighting strategies based on TIS100 expectations of specific geography, asset type, and consumer cohort future performance. As a result, these methods can result in significantly different target portfolios for the passive technologies discussed above.

  Yet another slightly different portfolio construction option is for investors to send information to IID 102 about their existing asset exposures (eg stocks, bonds, cash and (commercial and industrial) property) that they update as appropriate, Then, subject to investor preference for risk and return, the TIS 100 includes optimizing all portfolio holdings (ie, including all asset classes) of the investor in addition to the pool of EFM assets. In this way, the TIS 100 can provide investors with an “all property” asset planning service without necessarily managing the direct allocation of investors to non-EFM asset classes.

  More specific illustrations regarding TIS100 portfolio optimization capabilities are disclosed below. These procedures only form part of the TIS 100 series of algorithms, and subject to investor requirements, this procedure can be used to produce a target output that is sent to the TID 112. Here, the full range portfolio generation procedure of TIS100 includes more complex methods including extremely sophisticated functions (eg, neural networks), and what has been discussed herein is how the recognized range of TIS100 operations is recognized. It is important to note that this is not a limitation. The nature of the operations performed by the TIS 100 also needs to be applied to the situation for its preference aggregation and special mandate capabilities (especially in the former case, the TIS 100 will first determine which portfolio construction technology has the largest number of pools). Need to determine if it is likely to maximize the usefulness of the investor).

(A) Independent TIS100 portfolio optimization for returns For each independent TIS100 portfolio optimization option, investors 191 need not send IID 102 any additional information regarding their existing asset holdings. Thus, TIS 100 optimizes the EFM portfolio to be the only asset held by the investor.

  TIS100 optimization typically proceeds by generating a mathematical objective function that either maximizes or minimizes, and then defines any constraints that the objective function will obey. These calculations are all performed by a statistical application built into IS100.

  To illustrate, the investor intends to preserve an expert investment mandate (ie, a target EFM pool generated by TIS100 specifically tailored to investor preferences), including a $ X capital commitment. Assume that it is communicated to IID 102. Further assume that the investor has also entered a preference for the expected return for that investment, for example, Y% higher than the performance that can be expected to be obtained in EFM's passive portfolio. Once this information is extracted from IID 102 and the portfolio optimization procedure is initiated, assuming that the required return is actually achievable, TIS 100 will add the target portfolio characteristics of the EFM pool in addition to the expected risk profile of the portfolio. (Ie, including specific weights for a range of asset level attributes such as various geography and residence types) can be communicated to investors via IID 102. Of course, this data is also sent to the TID 112 if the investor agrees to proceed with the transaction. The portfolio construction technique as an index serving as a base of information generated by the TIS 100 is described by the following formula.

を最小にする。
ここで、以下の制約を条件とする。

式中、Ｗ_iは、各ＥＦＭ又はＥＦＭのグループに対するｎパーセントポートフォリオの重み（例えばＴＩＳ１００は、ポートフォリオの資産入力の基礎を形成する郵便番号レベルの地理単位を用いて最適化することができる）、ｎはＥＦＭの数、又は同様のＥＦＭのグループの数、δ_ijは各ＥＦＭ又はＥＦＭのグループの間のリターンの期待統計相関関係、ｒ_iは各ＥＦＭ又はＥＦＭのグループに起因する期待リターン、Ｅ（ｒ）は期待ポートフォリオレベルリターンである。 The objective function based on option (a) will minimize the risk of the EFM portfolio subject to the nominal portfolio return desired by the investor (eg 12% / year) and any other constraints as described below .
By selecting W _i (i = 1,..., N),

To minimize.
Here, the following constraints are the conditions.

Where W _i is the n percent portfolio weight for each EFM or group of EFMs (eg, TIS 100 can be optimized using the postal code level geographic unit that forms the basis of the portfolio asset input), n is the number of EFMs, or the number of similar EFM groups, δ _ij is the expected statistical correlation of returns between each EFM or EFM group, r _i is the expected return due to each EFM or EFM group, E (R) is the expected portfolio level return.

  The optimization problem outlined above is solved in TIS100. If constraint (d) is not needed, TIS 100 uses Lagrange's mathematical method to solve this problem to determine the value of unknown variable n (ie, the weight distribution for each individual EFM or group of EFMs). To process. If constraint (d) is needed, TIS 100 solves this problem using quadratic programming. These capabilities are built into the statistical application of TIS100.

The above formula (a) is a TIS100 formula of the expected fluctuation rate of the EFM portfolio. δ _ij can be automatically entered into a formula by TIS100. Equation (b) shows that the return of the EFM portfolio needs to be set equal to the investor's preferred target. Similarly, r _i can be entered automatically. Equation (c) simply indicates that weights need to be added up to 100% (ie, all capital needs to be allocated to EFM in this independent portfolio optimization embodiment). The inequality (d) is necessary when the “short” position cannot be taken with respect to the EFM, and is likely to fall under this condition. A short position means a situation in which an investor repurchases the same asset in the future after it sells it before it owns it (usually by borrowing the asset under an agreement to return later). This is the opposite (in an economic sense) of purchasing assets in the normal process, as investors profit from short selling when the price of the asset drops (not rises). It is preferable to provide such functionality to investors when a derivative market based on the underlying EFM securities is developed. In this preliminary case, inequality (d) is a necessary constraint for the optimization process.

(B) Independent optimization for risk The TIS 100 task in option (b) is similar to the task outlined above, except that the objective function and constraints are slightly modified. However, the actual method used by TIS 100 to determine the weight of the target portfolio is essentially the same.

を最小にする。
ここで、以下の制約を条件とする。

式中、全ての記号は上記と同じ説明であり、Ｅ（σ）は、その直ぐ上の（ａ）における目的関数と同じ方法で定義されるポートフォリオの期待変動率を表す。 With this option, the objective function of TIS100 is to maximize the portfolio level return (ie, not to minimize that risk as described above), subject to the desired risk level and any other constraints listed below. become.
By selecting W _i (i = 1,..., N)

To minimize.
Here, the following constraints are the conditions.

In the formula, all symbols have the same explanation as above, and E (σ) represents the expected volatility of the portfolio defined in the same manner as the objective function in (a) immediately above.

(C) Multi-asset class optimization for returns TIS 100 multi-asset class optimization procedure is for investors whose weights w _i include EFM and, for example, stocks, bonds, cash and other real estate assets (if applicable) It is conceptually similar to the independent technology outlined above, except that it applies to all investment classes in the proposed portfolio. In addition, as shown below, there may be another constraint that allows investors (eg, pension plans) to impose an upper limit on portfolio allocation to EFM.

を最小にする。
ここで、以下の制約を条件とする。

式中、Ｗ_EFMは投資家により予め指定されたＥＦＭプールに起因する最大重みであり、Ｗ_iは残りの資産クラス（例えば、株、債券及び現金）に起因する総ポートフォリオ重みであり、全ての他の記号は上記で定義した通りである。 The optimization problem of TIS100 is as follows.
By selecting W _i (i = 1,..., N)

To minimize.
Here, the following constraints are the conditions.

_Where W _EFM is the maximum weight due to the EFM pool pre-specified by the investor, and W _i is the total portfolio weight due to the remaining asset classes (eg, stocks, bonds and cash), Other symbols are as defined above.

を最小にする。
ここで、以下の制約を条件とする。

式中、全ての記号は上述と同じ説明である。 (D) Multi-asset class optimization for risk In this second multi-asset class option, the TIS 100 objective function maximizes the investor's total portfolio level return, subject to the desired risk level and any other constraints listed below. Slightly modified (ie not to minimize its risk as described above).
By selecting W _i (i = 1,..., N)

To minimize.
Here, the following constraints are the conditions.

In the formula, all symbols are the same as described above.

3. Asset Origination System (“AOS” 200)
Utilizing an electronic connection with TID 112, AOD 202, and AWD 210, AOS 200 allows a range of static and dynamic feedback and a selection of real-time EFM applications to be presented via its sales representative (ie, MMIP 201). Use feedforward decision rules. The ultimate goal of AOS 200 is to most closely approximate the portfolio preferences defined by TID 112 (thus the investor entered into IID 102 and processed by TIS 100 and the UCP 211 pre-designated portfolio, if applicable) To procure EFM assets that meet the requirements. FIG. 4 illustrates this process. Therefore, AOS 200 compares the data derived from AOD 202 (in relation to the application characteristics entered by MMIP 201) in real time with the target portfolio attributes and tolerance thresholds supplied by TID 112, and has already been approved by AOS 200 (stored in AWD 210). It is determined whether or not the presented application has progressed and is settled on the condition of the characteristics of the EFM asset (which will be drawn from now on). AOS 200 also manages the MMIP 201 reward system based on its static and dynamic decision rules, adjusts EFM contract terms to procure appropriate assets, and provides consumer cohorts and geographic regions to MMIP 201 Responsible for signaling changes in distribution and market needs. As a final task, AOS 200 needs to interact with AWD 201 and manage the transfer of capital (via MMIP 201) from UCP 211 to the successful applicant to request a loan when the EFM application is approved. is there. The collateral provided by the applicant in exchange for a loan is the underlying EFM contract, which, if applicable, is held by UCP 211 for the storage period until the contract is officially securitized. (Ie, the contract is contained in a pool owned by the end-user investor). Of course, in a one stage capital allocation process, the end user investor can hold assets from the beginning of the asset selection cycle.

  In addition to static asset valuation rules, AOS 200 also uses dynamic “feedback” and “feedforward” decision rules (also known as “process control systems”), which can increase the efficiency of its asset selection operations. Based on real-time electronic data transmission from AOD 202, TID 112 and AWD 210 to maximize. The real-time determination procedure of AOS 200 includes calculating so-called distribution “errors” (eg, EFM submissions or wide-ranging portfolio property deviations from what TID 112 targeted through TIS 100). It is used for the purpose of determining whether it is necessary to take appropriate asset evaluation measures (for example, accepting application information, rejecting it, or requesting further application information).

The two general steps that AOS 200 takes when managing its decision system include at least the following.
(1) After retrieving the input data of MMIP 201 from AOD 202, AOS 200 determines the applicant's observation attribute and its collateral attribute (this is known as a “signal” or “disturbance” variable in the technical process control vocabulary. ) And the preferred EFM application characteristics of AOS 200 based on the real-time evaluation of the difference between the target and tolerance threshold of TID 112 and the actual (ie, approved) application attributes stored in AWD 210 (this AOS 200 evaluation Can be referred to as a “set point” variable).
(2) Next, AOS 200 enters the difference estimated in (1) between the “signal” variable and the “setpoint” variable into the decision rule, and based on the results of this process, the actual Minimize the error observed before “settlement” or final approval (this can be categorized as a “feedforward” procedure), or minimize the error drawn from post-approval data, thereby Take the necessary steps to influence the asset selection performance of the company (this is a “feedback” technology).

  More specifically, the “feedforward” asset selection process of AOS 200 screens the current EFM application (TID 112 and AWD 210) using the target portfolio preferences generated from any prior (ie, prior to application approval) TID 112. That the AOS 200 simultaneously uses information from both the “feedforward” and “feedback” process control elements) and the application attributes entered into the AOD 202 by the MMIP 201 (eg, the applicant ’s In response to an attribute-based increase or decrease in EFM capital costs), dynamically modifying EFM contract terms in real time, and consequently affecting the likelihood of applicants accepting or rejecting AOS 200 proposed terms Pre-MMIP201 reward strategy invests To be configured to maximize the probability of an MMIP201 procurement application that most closely matches the portfolio requirements of the company, and to determine the content, structure and costs of the EFM market program to influence future EFM application patterns And calibrating (all of these are known as “manipulation” variables).

In contrast, AOS 200's “feedback” asset selection process is based on EFM requirements, MMIP201 reward system, EFM market program content, structure and costs, and real-time AOS 200 due to the characteristics of the approved EFM application. Includes any subsequent (ie post application approval) changes to the outcome of the decision (which in part will be the result of the post-mortem data collected from the AWD 210). In such a case, the AOS 200 process control system calculates the difference between the target variable and the observed variable and implements an appropriate asset selection measure. This includes accepting, rejecting or querying the application in real time, or sending information directly back to the IID 102 to change the output of the TIS 100 and the data stored in the TID 112.
All of the stages of AOS 200 described above are performed on a batch or real-time basis by an integrated computer system designed to manage advanced process control techniques.

In summary, the AOS 200 has been approved with the target EFM portfolio characteristics generated by the TIS100, utilizing electronic links with TID112, AOD202, and AWD210 in combination with its static and dynamic feedback and feedforward decision rules. Minimize fluctuations between actual EFM applications. In effect this is
(1) Derive input application data of MMIP 201, process it against simple static rules of AOS 200, and then obtain target portfolio characteristics included in TID 112 and previously approved application attributes held in AWD 210 Processing against more sophisticated dynamic rules, including comparing;
(2) sending signals to MMIP 201 to adjust the content, structure and cost of the EFM market program to regulate EFM requests by geography and consumer cohorts;
(3) modifying the terms of the EFM contract on a batch basis and in real time so that the approval application most closely matches the investor preference entered in IID 102;
(4) inputting information (often reflecting asset selection errors) back to IID 102 to influence the output generated by TIS 100 and the data stored in TID 112;
(5) MMIP201 reward to have a strong incentive to implement EFM applications that meet the expectations of TID 112 while continuously calibrating the MMIP201 reward parameters over time in response to observed performance Managing the system dynamically,
(6) setting up an EFM transaction by transferring capital from UCP 211 in exchange for collateral (ie a mortgage agreement) (representing a legal embodiment of an end user investor's claim on collateral assets);
With several auxiliary processes including:

  Here, the sampling of the AOS 200 procedure outlined above will be discussed in more detail, which are hereinafter known as AOS processes 200/1 to 200/6.

2.1 AOS process 200/1
Depending on the information stored in AOD 202, AOS 200 may provide the EFM applicant's profile (eg, age, income, current address, credit record, proposed property location, proposed property type) electronically entered into AOD 2020 by MMIP 201. Etc.) can be accessed in a very detailed series of characteristic-based data. The AOS 200 begins by electronically retrieving the relevant packet of application data and processing this data through a series of static decision rules in real time. For example, the data of the initial AOS 200 rule includes the following.
(1) Applicant's age (2) Property type (for example, single-family, two-family, or multiple buildings)
(3) Type of tenure (eg free tenure versus lease)
(4) The proposed address of the property (this may include a single zip code or an SLA selected by the applicant containing multiple zip codes)
(5) Applicant's current income (6) Whether EFM will be a leading independent mortgage or subordinated prime-rate loan (7) EFM will be upgraded from existing housing, or Whether to be used for the first property purchase to refinance the household's current mortgage or to release equity for consumption purposes (8) If applicable, the type of prime rate loan and interest rate (eg 8.5 Standard variable rate loan with% interest)
(9) If applicable, the required loan ratio (“LVR”) for prime rate loans (eg 50%, 60%, 70%)
(10) the required LVR for EFM (eg 10%, 15%, 20%), and
(11) The applicant's minimum deposit expressed as a valuable percentage of the requested property (eg 3%, 5%, 10%)

  It should be noted that the rule data outlined above is a non-limiting example of the rules that AOS 200 requires to complete its processing functions. Also, AOS 200 is likely to receive additional data that defines whether the applicant in question has been approved in the prime interest loan. This data can be received by the AOS before or after processing the rules to determine if the application has progressed to the preliminary approval stage.

Once the rule data is retrieved from the AOD 202 by the AOS 200, various static and dynamic feedforward and feedback rules can be processed. Illustratively, these stages can include the following automated real-time procedures:
Step 1: The MMIP 201 inputs EFM application data to the AOD 202.
Step 2: AOS 200 identifies the arrival of new application data via a real-time electronic connector. The AOS 200 examines the rules, and extracts related application data from the AOD 202 on the condition of the requirements.
Step 3: AOS processes the first rule. A simple AOS 200 rule includes:
R1: Is the applicant's age over 18?
If so, go to the next rule.
Otherwise, the process is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
R2: Is the applicant's tenure type a free tenure or a lease right?
If it is a free tenure, proceed to the next rule.
If it is a lease right, the processing is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
R3: Can the applicant supply the minimum required deposit?
If so, go to the next rule.
Otherwise, the process is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
R4: Is the application for a prior-order independent EFM or for an EFM that is a subordinate to a prime rate loan?
If the application is for a priority independent EFM, additional data is extracted from the TID 112 and AWD 210 to determine whether any other independent EFM can be accepted.
If so, go to the next rule.
Otherwise, the process is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
If the application is for an EFM that is a subordinated prime-primed loan, additional data is pulled from the TID 112 and AWD 210 to determine if any other subordinated EFM can be accepted.
If so, go to the next rule.
Otherwise, the process is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
R5: Are both property type and its geographic location within acceptable limits when determining with reference to TID 112 and AWD 210?
If so, go to the next rule.
Otherwise, the process is stopped, the rejection data is stored in the AOD 202, and a rejection signal is sent to the MMIP 201.
Step 5: If the application fails to proceed successfully, the evaluation process stops when the AOS 200 saves the rejection data in the AOD 202 and electronically sends this decision to the MMIP 201.
Step 6: If the application satisfies all the rules, the AOS 200 transmits the approval decision to the MMIP 201 in real time, and simultaneously transmits the approval application data to the AWD 210. The application then proceeds to the settlement phase of the life cycle being processed.

式中、実際の関数は、ターゲット申請特性（これは、上記で概説したようにＴＩＤ１１２及びＡＷＤ２１０に保存される属性間のＡＯＳ２００の推定差異の関数となる）と問題の申請者に適用する特定の属性との間の差に基づく。即ち、

式中、ｉは１〜Ｎの申請特性であり、ｆ_iは２つの変数、即ち、属性ｉに対するターゲット特性ＴＣ_i及び実際の申請者特性Ｃ_iの関数である。評価される特性ｉは、限定ではないが、；申請者の年齢、性別、収入、配偶者関係、クレジット記録、現在の住所、以前の取引記録、収入レバレッジ、融資比率（即ち存在する場合には第１モーゲージ）；住居の場所、タイプ、価格、大きさ、土地対価値比；及び、ＭＭＩＰ２０１の場所、ネットワーク会員、及び以前のＥＦＭオリジネーション記録を含む。Ｋ_iは、相対的特性に重みを付けるのに用いられる定数であり、Ｘは、ここに示すように、ＡＯＳ２００推定申請選好ＴＣ_iからの許容可能な全発散ｅの合計の上限を示す。 Here, the specific method used by AOS 200 when automatically processing some of the more complex feedback and feedforward decision requirements (as referenced in exemplary rule 4 and rule 5 above) is detailed. Consider.
The difference (or error) between the ideal portfolio characteristics stored in TID 112 and the attributes of a previously approved application held in AWD 210 to determine whether AOS 200 should accept or reject the EFM application. ) Initial calculation. The output of this analysis is then processed by the AOS 200 on the data derived from the AOD 202, and this output relates to what action is appropriate (eg, accept, reject, or request more information). Inform the AOS 200 of the information. In this first set of algorithms, AOS 200 assumes that the application for the problem includes standard conditions, and the application information (based on the target and actual attributes stored in TID 112 and AWD 210, respectively) Estimate whether you will be satisfied. Specifically, the calculation of the error function e is as follows.

Where the actual function is the target application characteristic (which will be a function of the estimated difference in AOS 200 between the attributes stored in TID 112 and AWD 210 as outlined above) and the specific application that applies to the applicant in question. Based on the difference between attributes. That is,

Where i is the application characteristic from 1 to N, and f _i is a function of two variables, namely the target characteristic TC _i and the actual applicant characteristic C _i for the attribute i. Characteristic i to be evaluated is, but is not limited to: the applicant's age, gender, income, spouse relationship, credit record, current address, previous transaction record, income leverage, loan ratio (if any) 1st mortgage); including location, type, price, size, land-to-value ratio; and MMIP 201 location, network membership, and previous EFM origination records. K _i is a constant used to weight the relative characteristics, and X denotes the upper limit of the total allowable total divergence e from the AOS 200 estimated application preference TC _i as shown here.

  The function of this algorithm is used as follows. That is, if e> X, the application will be rejected and will not proceed to the next stage of the evaluation process. This information is communicated to both the AOD 202 and the MMIP 201 that originally provided the application. In order to limit fraud, the AOS 200 also compares all future applicant information with previous presentations stored in the AOD 202 so that the consumer and / or MMIP 201 can increase the probability of successful application. Ensure that key variables (eg income) are not manipulated. On the other hand, if e ≦ X, the application goes through a second AOS 200 evaluation stage, which includes using a more advanced contract calibration algorithm that is responsible for determining contract terms and associated MMIP 201 compensation. .

2.2 AOS200 process 200/2
If the application meets AOS200 process 200/1 and e ≦ X, then AOS 200 effectively raises the question “What specific conditions should this application be approved for?” Has the ability to handle more advanced contract calibration rules. In response to this question, the AOS 200 is preferred in the analysis performed in the process 200/1 of the AOS 200 based on the applicant's observation characteristics and the difference between the target and actual attributes stored in the TID 112 and AWD 210, respectively. Optimize EFM contract terms (eg maturity date, capital appreciation claim, capital depreciation claim, interest rate, rental yield, and / or prepayment clause) based on the magnitude of the difference between attributes it can.

  Once the EFM recruitment conditions are calculated, the AOS 200 electronically sends this information to the MMIP 201 over a real-time connection and then informs the applicant of the details of the final contract. Simultaneously with this process, the AOS 200 sends the relevant application data to the AOD 202. Even if the applicant decides to reject the EFM recruitment, the AOD 202 keeps a record of the problem condition for future evaluation.

アルゴリズムの実際の構造は、ＡＯＳ２００プロセス２００／１で行われる分析において求められる好ましい属性と、申請自体で観察される属性との間の差に基づくことになり、

式中、ｉ、ｆ_i、ＴＣ_i、及びＣ_iは、上記で定義された通りであり、Ｋ_iは、相対特性に重み付けするのに用いられる新しい定数であり、Ｐは、差の最大値である。 In order to calculate the exact condition of EFM, AOS 200 uses an algorithm that includes an additive function over all variables based on different characteristics. As a result, the EFM condition function P is calculated as follows.

The actual structure of the algorithm will be based on the difference between the preferred attributes required in the analysis performed in the AOS 200 process 200/1 and the attributes observed in the application itself,

Where i, f _i , TC _i , and C _i are as defined above, K _i is a new constant used to weight relative properties, and P is the maximum difference. It is.

である場合には、ＡＯＳ２００は、複数の契約可能性をＭＭＩＰ２０１に伝達して返すことを選択する。（

である場合、式（５）の条件は、その特性が計算した誤差変動幅の限界であるので、申請者が利用可能な唯一の契約の機会であることが分かり、ＡＯＳ２００は、申請を承認する代わりに最も魅力的な可能性のある条件を要求する）。 To ensure that each contract is properly calibrated, again using the maximum paid condition used in equation (5),

If so, the AOS 200 selects to send a plurality of contract possibilities to the MMIP 201 for return. (

, The condition of equation (5) is the limit of the error variation calculated by the characteristic, so it is known that this is the only contract opportunity available to the applicant, and the AOS 200 approves the application. Instead demanding the most attractive and possible conditions).

In addition to changing the maturity date, interest rate, rental yield, or prepayment terms, these contractual possibilities include, but are not limited to (with respect to EFM contract parameter descriptions):
(1) 1: 1: 1 EFM capital cost;
(2) EFM capital cost of 1: 1: 0;
(3) EFM capital cost of 1: 1.5: 0;
(4) 1: 2: 1 EFM capital cost;
(5) EFM capital cost of 1: 2: 2.
(6) 1: 2: 0 EFM capital cost;
(7) EFM capital cost of 1: 3: 1;
(8) EFM capital cost of 1: 3: 2;
(9) 1: 3: 3 EFM capital cost;
(10) EFM capital cost of 1: 3: 0; or (11) EFM capital cost of x: y: z in addition to standard time-dependent interest rates and all derivatives

これは、Ｃ_i変数の一部がＭＭＩＰ２０１又はＡＯＳ２００の何れかにより操作される較正関数の有界最大化を表す。 Next, either AOS 200 or MMIP 201 interacts repeatedly with the applicant (the former is possible with an internet-based EFM distribution system that consumers interface directly with AOS 200 without the need for MMIP 201 mediators). The contract preference of the applicant can be determined by changing the conditions of the EFM contract at the following times.

This represents a bounded maximization of the calibration function where some of the C _i variables are manipulated by either MMIP 201 or AOS 200.

棄却の割合は、単に、所与の時間にわたる棄却の合計であり、すなわち、

である。 2.3 AOS200 process 200/3
In parallel with the AOS 200 evaluation in the process 200/1 regarding whether the application should go to the contract calibration stage or be completely rejected, the AOS 200 also targets as a result of the analysis performed by the AOS 200 advertising output algorithm Send market feedback to MMIP 201. This algorithm monitors each application procurement operation of MMIP 201 against the forecast of AOS 200, where these expected values are dynamically determined by AOS 200 over time, and the effect of the relative proportion of advertising spend on application procurement. Adjusted to assumptions about The AOS 200 advertisement output algorithm compares the performance of each MMIP 201 with the expected performance and operates based on the percent tolerance as a function of different application characteristics. The two main calculations of the algorithm relate to (1) the difference between the actual and expected total or percentage of application rejections and (2) the difference between the actual and expected total or percentage of application approvals. The total rejection is given by:

The percentage of rejection is simply the sum of rejections over a given time, ie

It is.

式中、Ｒ_iは、広告の価値及び構成を変えることにより影響を与えることができる各申請特性ｉに基づく申請の棄却を表し、ＴＡＰ_iは供給された申請の総数を表し、Ｔ_iは、ある所与の期間の棄却の割合に関連する許容値である。あらゆるＭＭＩＰ２０１の申請調達動作が、ＡＯＳ２００により推定されたものと一致して動いたかどうかを判定するために、アルゴリズムは、以下の種類の計算を行うことができる。

式中、Ｅ（Ｒ_i）は、ＡＯＳ２００の期待棄却数である。期待値を導入することにより、ＡＯＳ２００は、各又は全てのＭＭＩＰ２０１の業績をより厳密に監視することができ、これは、直ぐ上の不等式（１０）、（１１）及び（１２）の関連で用いることができる。 The change in rejection rate is equal to the difference in rejection rate over time.

Where R _i represents the rejection of applications based on each application characteristic i that can be influenced by changing the value and composition of the advertisement, TAP _i represents the total number of applications served, and T _i is A tolerance associated with the percentage of rejections for a given period. In order to determine whether any MMIP 201 application procurement actions have moved in line with those estimated by the AOS 200, the algorithm can perform the following types of calculations.

In the equation, E (R _i ) is the expected rejection number of the AOS 200. By introducing expectations, AOS 200 can more closely monitor the performance of each or all MMIPs 201, which is used in the context of the above inequalities (10), (11) and (12). be able to.

  Variables that may change due to the use of the advertisement include the type of applicant (eg, first buyer, upgrader, refinancer and retired), the applicant's age, income and location. By focusing on these application identifiers, AOS 200 (with its associated MMIP 201) will have an impact on the actual approval pool of application exposure to specific demographic cohorts, residence types and geographic areas. be able to.

  Specifically, the output of inequality (10) above informs AOS 200 of the ratio of rejection requests to the total number received in relation to its preferred tolerance parameter. In inequality (11), The rate of change of this ratio is obtained, and inequality (12) gives the first derivative of the rate of change calculated by inequality (11). Higher order derivatives can be used, but the value derived from these calculations is a decreasing function of the order of the derivative.

All the advertising algorithm outputs outlined above are delivered to AOD 202, and if the tolerance is greater than T _i , AOS 200 informs MMIP 201 of the result and information necessary to adjust this advertising program. To MMIP201 to improve application procurement.

The considerations included in the approval data (stored in AOD 202) are substantially different from the considerations related to rejection. The acceptance data indicates the number and percentage of EFM applications approved by AOS 200 over time. Furthermore, they reveal the types of applicants that are ready to use EFM and are known to be acceptable to AOS 200. The types of algorithms used to analyze this data include the following inequalities:

2.4 AOS200 process 200/4
Process 200/4 is one of the feedback control systems of AOS 200, and follows the attributes of the posterior pool of approved EFM applications stored in AWD 210 for the investor's pre-preferences initially specified by TID 112. Minimize estimation error.

  As described above, the AOS 200 essentially extracts from the AOD 202 a mixture of the regular multidimensional data input signal from the MMIP 201 and the random multidimensional data input signal. (Random means that a given applicant at a given time is, for example, a first buyer, an existing owner, or an elderly homeowner, to name a few possible parameters. Whether to obtain an EFM for a detached house, terrace or unit; and that it is difficult to predict the geographical location of the property in question (eg Sydney, Melbourne, Brisbane, Adelaide and Perth) Then the estimated difference between the approved application attributes and the properties requested by TID 112 is returned by AOS 200 to IID 102, and future calculations of TIS 102 are performed in the actual EFM contract To be able to consider the developmental aspects of the pool. Obviously, this feedback mechanism is critical to the AOS 200's ability to continue to optimize its asset selection behavior and meet the needs of end-user investors.

の比Ｋｐにより求められ、ここで、バイアス値は、誤差がないときの操作変数の状態である。誤差自体は、目標値から測定変数の実際の値を引いたものとして定義され、Ｋｐは比例誤差に適用される制御比である。このことは、

であることを意味する。
３．ＡＯＳ２００の「積分」制御では、操作変数は、前の誤差（現在の誤差を除く）の比率プラスバイアス値

である。Ｋ_Iは、積分動作のために前の誤差の合計に適用される制御比であり、τ_Iは、積分動作に用いられる積分時間（例えば積分制御は、前の誤差の全てに対し２週間毎に適用される）を表す。よって、

である。
式中、誤差ｅ_kはＴＣ_k−Ｃ_kに等しく、全ての他の変数は上記で定義した通りである。
４．「比例及び積分」制御の両方において、操作変数ｐ_nは、現在の誤差ｅ_nプラスバイアス値

を含む、全ての前の誤差

の比である。前述と同様に、τ_Iは積分動作に用いられる積分時間である。従って、

である。
５．ＡＯＳ２００が、制御の最も高度な「比例−積分−微分」（「ＰＩＤ」）の形式を用いる場合には、操作変数ｐ_nは、全ての前の誤差

の比プラス特定の割合の最新の誤差変化

及びバイアス値

である。Ｋ_Dは、最新の誤差に適用される制御比である。この場合もτ_Dは、微分動作に用いられる積分時間である。よって、

There are at least five possible methods of feedback control used by the AOS 200: (1) 2 position; (2) proportional; (3) proportional plus integral; (4) proportional plus derivative; and (5) Known as proportional plus integral plus derivative. In this context, the “operating variables” of AOS 200 are the terms of the EFM contract, the remuneration provided to MMIP 201, the amount of financing available to each applicant (ie, the maximum LVR), and any advertising signal sent to MMIP 201. Including. Each of the manipulated variables is used by AOS 200 to manage a variety of different control methods, examples of which are outlined below in time steps.
1. In “2-position” control, X is applied if e <A, and Y is applied if e> B. Here, A and B are preset AOS200 parameters, and X and Y are operation variables. This is the simplest form of AOS 200 process control, but it is also the most basic.
2. In the “proportional” control of the AOS 200, the manipulated variable p (t) is an error plus a bias value.

The bias value is the state of the manipulated variable when there is no error. The error itself is defined as the target value minus the actual value of the measurement variable, and Kp is the control ratio applied to the proportional error. This means

It means that.
3. In the “integration” control of AOS200, the manipulated variable is the ratio of the previous error (excluding the current error) plus the bias value.

It is. K _I is the control ratio applied to the sum of previous errors for the integration operation, and τ _I is the integration time used for the integration operation (eg, integration control is every 2 weeks for all previous errors). To apply). Therefore,

It is.
Where the error e _k is equal to TC _k −C _k and all other variables are as defined above.
4). In both the "proportional and integral" control, manipulated variables p _n, the current error e _n plus bias value

Including all previous errors, including

Ratio. As before, τ _I is the integration time used for the integration operation. Therefore,

It is.
5. If the AOS 200 uses the most advanced “proportional-integral-derivative” (“PID”) form of control, then the manipulated variable _pn is _equal to all previous errors.

Ratio plus the latest error change of a certain percentage

And bias value

It is. K _D is a control ratio applied to the latest error. In this case as well, τ _D is the integration time used for the differentiation operation. Therefore,

であることを意味すると仮定する。これらは、Ｋ_P、Ｋ_I及びＫ_Dがこの性質のシステムに対して大きすぎる可能性があるとすると、僅かに非現実的な仮定である。また、Ｋ_IがＰ_nを決定していることも観察される。 To give a simple example of the AOS 200 feedback control option outlined above, a measurement of the AOS 200 application error is entered into the PID system, which results in the resulting control action being sent directly back to IID 102. As a possible illustration, Table 3 below outlines the PID control function, where the average target house price of the EFM portfolio is $ 500,000 (determined by TIS100 and communicated to TID112) The average value of approved residences of AOS 200 is smaller than the required value. Table 3 estimates AOS200 PID control parameter p _n has been shown to vary over time based on the calculated error. For simplicity, τ _D and τ _I are equal to t (which means Δt ÷ τ _I = 1 and τ _I ÷ Δt = 1), and K _P , K _I and K _D are Equal to 1,

Suppose that These are slightly unrealistic assumptions if K _P , K _I and K _D can be too large for a system of this nature. Also, K _I is also observed that determines the P _n.

Table 3

The output from control algorithm P _{n is} then sent to IID 102 by AOS 200. As a result, the TIS 100 extracts this information from the IID 102, obtains the target value of the generated residence, and outputs it to the TID 112. In this example, as the error increases, the signal P _n to IID 102 also increases, increasing the target price to ensure that the average price of the approved EFM portfolio approximates the original $ 500,000 set point. Indicates that it is necessary. When the parameters of K _P , K _I and K _D , τ _D and τ _I are correctly calibrated, the output P _n can be the target price, or other examples such as the location, size or type of residence Can be added directly to any operating variable.

2.5 AOS200 process 200/5
In the AOS 200 process 200/5, the AOS 200 determines the exact amount and duration of payment to be made to the MMIP 201 using a reward algorithm. In this procedure, there are at least two components for MMIP 201 compensation. That is, (1) the initial cost paid by the applicant, and (2) the ongoing trailing commission provided by ASServS 300. The calculation of the main process 200/5 is performed by the AOS 200, and the auxiliary calculation is performed by the AServS 300 over the number of years of the approved application. The main factors that generate MMIP 201 rewards are: (1) how close the procurement application is to the AOS 200 pre-preference required for the characteristics stored in TID 112 and AWD 210; Past performance; and (3) investment returns delivered by EFM over its lifetime.

である。 In order to estimate the optimal compensation package MR for MMIP 201, AOS 200 uses an algorithm to calculate MMIP 201's application procurement performance, followed by the reward reduction parameter MRR, which is the greater the divergence of the application from the target criteria, The reward reduction is structured to be large and is given below.

It is.

式中、ＲＯＲは、ＭＭＩＰ２０１のＥＦＭに起因するリターンの割合を表し、Ｄｕｒａｔｉｏｎは、ＭＭＩＰ２０１の平均ＥＦＭ保有期間を意味し、Ｖａｌｕａｔｉｏｎは、ＭＭＩＰ２０１がプールに寄与するＥＦＭの総額面である。

The AOS 200 defines the total compensation of the MMIP 201 as MR = maximum reward−MRR obtained by subtracting the reduction parameter viz from the maximum reward. As AOS 200 inputs past data regarding various MMIP 201 behaviors into AOD 202, it can calibrate its incentive structure more intelligently by rewarding past out performance. Here, the EFM pool end-user investor has at least three variables: (1) the percentage of returns attributable to each collateral asset (ie, residence), and (2) the EFM repayment period that defines the distribution of pool cash flow And (3) it is likely that each MMIP 201 is most interested in the contribution of each MMIP 201 to the face value of the pool (ie, the total value of the application considering procurement as a specific percentage of the total pool value). The difference between the performance of each MMIP 201 and the performance due to the average MMIP 201 is that the AOS 200 is the primary input to the total compensation of MMIP 201 using the following basic case algorithm to highlight only one reference point: A certain reward adjustment factor (“RAF”) can be estimated.

In the equation, ROR represents the ratio of returns due to the EFM of MMIP 201, Duration means the average EFM holding period of MMIP 201, and Value is the total amount of EFM that MMIP 201 contributes to the pool.

  Once the compensation parameters for MMIP 201 are calculated, AOS 200 multiplies the percent output by the EFM face value and calculates the initial origination fee paid by the applicant. At the same time, AOS 200 communicates the trailing metrics determined in equation (24) above to AServS 300 so that it can calculate the value of ongoing payments that need to be made to MMIP 201.

2.6 AOS200 process 200/6
After the AOS 200 process 200/1 to 200/5 is completed, the AOS 200 establishes the EFM application condition in real time and sends this information to the end user applicant via the AOD 202 and finally the MMIP 201 (the MMIP 201 applies the application). Assume that the mediator and the AOS 200 mediate). The AOS 200 also electronically sends all application specific data to the AWD 210 so that it has a complete record of the attributes of the approved asset. In the situation where the transaction is finalized, the amount of funds lent and / or the valuation of collateral assets (ie property) can be adjusted between the time of application approval and the time of transaction end. It is necessary to interface with MMIP 201 until day. If any of these parameters are changed, bounded maximization of AOS 200 processes 200/1 and 200/2 is performed again and the results are returned to AOD 202 and MMIP 201.

  On the transaction settlement date, the AOS 200 facilitates the transfer of financial capital by directly communicating information about the amount of capital that needs to be withdrawn to the AWD 210 and thus the UGP 211. Upon receiving this data, UCP 211 releases funds for transfer to the applicant. At the same time, the AOS 200 transmits related settlement data to the AOD 202, the MMIP 201, and the AWD 210. At this point, the AWD 210 has all information regarding application characteristics (eg, age, income, credit record, spouse relationship, residence type, price, size, location, etc.) and settlement date. As a final task, the AOS 200 communicates payment information to the IID 102, which can dynamically refine the TID 112 in time series when the TIS 100 is approved for application. As noted above, this continuous feedback loop allows the TIS 100 to adjust its investment preferences with respect to approved application attributes to minimize any divergence between the target portfolio characteristics and the actual approval pool of the EFM application. .

4). Asset securitization system ("ASS" 400)
ASS 400 automatically through pre-specified parameters (eg, when a specific number or value of EFM has been procured or a specific time period has elapsed, as revealed by reference to AWD 210 and TID 112) ASS 400 may use the real-time electronic interface with TID 112 and AWD 210 to determine the actual approved EFM characteristics included in TID 112, either at the discretion or based on discretion by SM. Compare with preferences (recall that new information is continuously refined over time as it is entered into IID 102). The ASS 400 then processes a series of static and dynamic feedback and feedforward decision rules, and the end user investor preferences stored in the TID 112 (eg, adding different types of financial rights to the EFM pool, basis Restructuring the cash flow claims of the EFM contracts that will become (e.g. put in their principal and revenue components) or rebuild the pool using various active and passive optimization procedures (TIS100 target method) To determine what measures, if any, will be required to optimize the structure of an investment pool that includes EFMs that are approved to most closely match those disclosed above as part of This also means that the ASS 400 will generate the generated EFM assets in the UCP 211 (in this scenario based on a relatively short period of mediation). Transfer from a controlled custody to a final investment portfolio to be sold to a third party investor, or a simpler one-step capital In the case of an allocation process (where the original provider of underwriting capital becomes the same investor intended to hold EFM assets for a long time), the EFM assets are held during the AOS 200 asset selection process Simply calibrating the properties of existing investment pools.

  In order to avoid misunderstandings, it is necessary to clarify that the AWD 210 is a computer database connected to the AOS 200 and ASS 400 via electronic links, like the IID 102, TID 112, and AOD 202. As described above, the AWD 210 maintains all the details of the AOS200 approved application that is held as collateral by the UCP 211 (initially procured by the MMIP 201). These features are collected by the MMIP 201 and input to the AOD 202 as part of the AOS 200 asset selection process (usually via an internet-based interface). Once approved, the application data is sent to the AWD 210 by the AOS 200 for the purposes of aggregation and subsequent element decomposition as needed, where the EFM can be re-inclusive and sold to its long-term holder.

Features collected and stored in the AWD 210 include:
(1) Applicant age;
(2) Property type (for example, a complete detached house, a detached house, or a continuous building);
(3) Type of tenure (eg free tenure versus lease);
(4) Property address;
(5) Applicant's current income;
(6) Applicant's credit record;
(7) Whether the EFM is a leading independent mortgage or a subordinate to a prime rate loan;
(8) Whether the EFM was used for the first property purchase to upgrade from an existing home, to refinance the household's current mortgage, or to release equity for consumption;
(9) If applicable, prime rate loans and interest types (eg, 8.5% interest rate standard variable rate loans);
(10) If applicable, LVR for prime rate loans (eg 50%, 60%, 70%);
(11) LVR for EFM (eg 10%, 15%, 20%); and (12) Applicant's deposit expressed as a percentage of the value of the proposed property (eg 3%, 5%, 10%)

  The ASS 400 continuously monitors the AWD 210 according to various decision rules such as the limits of the UCP 211 stored within the AWD 210 and / or the dynamic investor acceptance preferences contained in the TID 112. The securitization process outlined above begins as soon as the AWD 210 storage characteristics (eg, minimum level of portfolio diversification) reach an acceptable level. Here, as disclosed above, the final portfolio construction algorithm of ASS 400 includes all of the procedures used by TIS 100 to generate an ideal portfolio holding that is output to TID 112 based on the information input supplied by IID 102. That also has no meaning in this case.

  Upon completion of the securitization process, the ASS 400 transfers all of the associated EFM contract data from the AWD 210 and the asset servicing database (“ASservD”) 302 to the asset management database (“AMD”) 502. At the same time, if the ASS 400 holds the EFM based on short-term mediation, the ASS 400 determines the UCP 211 reward based on the amount received by the securitization event.

5. Asset servicing system ("ASS" 300)
The AServS 300 is responsible for all of the underlying contract management requirements during that period, which are then outsourced to a third party asset servicing information provider (“ASIP”) 301. These requirements include processing the changes to the contract terms required by AMS 500, and initial and subsequent mortgage refinancing, default events, prepayments, property restoration, and ongoing fee management paid to MMIP 201. And managing the processing of repayment cash flow to the end-user investor along with AMD 502. Any data regarding the contract servicing event is communicated to ASServD 302 by ASIP 301 and the details are then relayed to AServS 300. The AServS 300 then interfaces with both the AWD 210 during the storage period and the AMD 502 when the contract is sold to a third party. If the AMS 500 decides to adjust the terms of the EFM (eg, maturity date, capital appreciation claim, capital depreciation claim, and / or prepayment clause), this information is sent to the AservS 300 through the AservD 302 and then the AServS 300 Executes the instruction. Similarly, if either AMS 500 or AOS 200 wants to adjust the trailing commission paid to MMIP 201, these will be communicated to AServS 300 through AservD 302 for direct action. AServD 302 also receives pool valuation information from AMS 500, which is combined with MMIP 201's trailing commission information to ensure that MMIP 201 is rewarded based on a certain percentage of ongoing pool valuations. .

6). Asset management system (“AMS” 500)
This final component of the overall system 600 optimizes the risk-return profile of the securitized EFM pool. As mentioned above, these pools were initially sourced and built through AOS 200 and ASS 400 according to the preferences shown in TID 112, but were continuously optimized over time and were most useful to end investors. Guarantee sex. AMS 500 can be implemented to accurately measure the performance of each investment pool relative to initial expectations and for either changes to the underlying contract term or new tranche aspects of assets introduced into open-ended funds Investment Mandate (hereinafter “IM”) is designed by AMS 500 based on the preferences supplied by IID 102 and feedback received from IMIP 501 and is held by AMD Will be.

  IM constrains the maximum exposure a pool can have for any particular geographic region, consumer cohort or residence type, and procedures that can add a new tranche of assets. IM is also the nature of the changes that can occur to the consumer's cost of capital (actually encapsulated via EFM's claims on the appreciation and depreciation of the expected value of collateral assets) and Set strict limits on the specific situations that can occur. Once calculated by the AMS 500, the IM details are fed to the AMD 502, where the AMS 500 dynamically interfaces with the IM, and its parameters are associated with relevant secondary market metrics (eg, pool price, volume, volatility). , Geographic weight, yield, etc.). As long as the AMS 500 uses its dynamic decision rules to observe any significant divergence between these parameters and the difference beyond a pre-specified threshold that determines the maximum acceptable limit set in the IM, the AMS 500 You may have the right to implement certain corrective actions.

式中、全ての記号は、上記の式（５）と同様に解釈される。この式は、現在の申請者を選別するためのＴＩＤ１１２から導出されたターゲットポートフォリオ属性；ＭＭＩＰ２０１からの入力属性に応答する契約条件の動的価格決定；及びＭＭＩＰ２０１が期待値及び広告プログラムに従って契約を発行するよう動機付けする構造にされた事前報酬ストラテジーを変更するのに用いられ、これらの全ては既に詳細に考察された。これらの調整は、各ターゲット属性に対してパラメータＫ_P、Ｋ_I、Ｋ_D、τ_I及びτ_Dを較正し、制御変数特性の誤差が経時的に最小となるのを確保することに基づくことができる。従って、ＡＭＳ５００は、プロセス制御の高度なモデルを用いることで、調整パラメータ値が理論的に求められ、或いは経験的調整と理論的調整との組み合わせにより求められる。 In order to perform these measures, a feedback control mechanism is required to determine the amount of adjustment that needs to be made. For each pool characteristic with a performance expectation or target, the AMS 500 controls the system to minimize the error between the target and the actual characteristic. Target characteristics include pool yield, capital growth, relative performance, total return, trading volume, volatility, correlation, cointegration, long-term diversification and consumer or asset specific attributes. The equation that will define the feedback control is based on using the difference between the current error rate, the past error rate, and the latest error. The nature of this error feedback control algorithm is the same as that outlined in (5) above, and is configured as follows.

In the formula, all symbols are interpreted in the same manner as the above formula (5). This formula is a target portfolio attribute derived from TID 112 to screen current applicants; dynamic pricing of contract terms in response to input attributes from MMIP 201; and MMIP 201 issues contracts according to expected values and advertising programs All of these have already been discussed in detail, as they are used to modify pre-reward strategies that are structured to motivate to. These adjustments are based on calibrating the parameters K _P , K _I , K _D , τ _I and τ _D for each target attribute to ensure that the control variable characteristic error is minimized over time. Can do. Therefore, the AMS 500 uses a sophisticated process control model to theoretically determine the adjustment parameter value, or a combination of empirical adjustment and theoretical adjustment.

  The AMS 500 also uses feedforward control to develop a method model in which investor behavior in the pool will change, either due to AMS 500 actions or consumer behavior. As an example, if the yield profile in one particular area does not match what was originally expected by TIS 100, AMS 500 will send a specific class of households to AServS 300 (indirectly via AServD 302). Instruct the EFM to reduce the capital cost of the EFM for a finite period of time (for example, the first buyer) and encourage more sophisticated trading activities. Key EFM conditions that AMS 500 can modify as part of its ongoing portfolio management responsibilities include, but are not limited to: EFM's cost of capital (ie, X: Y: Z relationship above); maximum duration; remediation clause; refinancing Clause; prepayment clause; and termination penalty.

Now consider some of the broad portfolio construction and investment management issues that affect the way the AMS 500 functions.
When an investor submits the initial requirements to IID 102 (which executes these through a cascade and interface of subordinate systems), the active vs. passive exposure, pool yield profile, tax liability generation, and above It will convey many specific preferences regarding key portfolio level characteristics such as the long-term (ie time) diversification described. As a result, these specifications have an impact on the current and future structure of the securitization pool. For example, pools can be closed-end or open-ended, leverage can be introduced by issuing debt and / or other special financial products, and the preferences of secondary market participants can be more accurately Can be restructured to reflect subordinate securities. Next, primary taxation, yield and decentralization considerations will be described within the context of the types of operations that AMS 500 can perform.

6.1 Tax construction In most jurisdictions, there is a clear distinction made for tax purposes between financial gains and losses arising from the capital account and gains and losses arising from the revenue account. Where there is a difference in the processing of one and the other, there is a potential comparative advantage that exists in much the same way in relation to gains from trading in international macroeconomic theory. As soon as the initial securitization of EFM takes place under ASS 400, it can be further subdivided according to the various tax customer expectations communicated directly through IID 102 and the provisions under which AMS 500 is made available under IM There is sex.

  As an illustration, take the case of a single EFM. When the underlying residence is sold, the contract payoff occurs to the investor as a principal return and is taken for tax purposes on the capital account (the total amount initially loaned to the homeowner) This would include price increases or depreciation (depending on the performance of the underlying asset) of the housing that will be generated by the investor as revenue and will be taken up in the revenue account. For various reasons, some investors have a relative preference to prefer one form over another. The AMS 500 satisfies these preferences with its inherent tax structure, thereby collecting a large amount of capital in the investor market, thus increasing the amount of ongoing funds available to consumers via the AOS 200, and It would be desirable to improve the overall system 600 capabilities to reduce the burden faced by homeowners. The simplest way for AMS 500 to facilitate this process is to divide the rights associated with each EFM by the two sources of financial gain (or loss) outlined immediately above, and to Restructuring). This is an automated procedure that is acceptable to the IM and utilized by the AMS 500 when an appropriate signal is received from the IID 102. Next, different sets of financial claims are built as completely separate securities, one with the right to all returns of the principal and the other is the appreciation or depreciation that occurs for the contract Have more risky rights to As long as there is some relative preference that prefers one over others, this allows and facilitates internal mutual assistance, increasing the amount of money that AOS 200 can provide to consumers.

  Explaining through a rough example, an investor 191A may be willing to pay only $ 100 for collateral that was charged for both sets of financial rights (ie principal, appreciation and depreciation) However, both investors 191A and 191B are willing to pay a total of $ 105 for the same combination package depending on their relative preferences and circumstances. This facilitates funding through the overall system 600, thereby achieving the purpose of bringing these two essentially different groups together to provide equity capital. The algorithm used by the AMS 500 to affect these auxiliary structures is as follows.

Consider the bundled investment preferences under TID 112, assume that there are two for this purpose, and name them A and B. The tax rates associated with each are A _CGT and B _CGT , respectively. Similarly, the effective tax rate of income tax is set to A _IT and B _IT in the same way. Then
A _CGT -B _CGT > X (where X is a positive real number) and B _IT -A _CGT > Y (where Y is a positive real number)
If so, the AMS 500 sends a command to the AMD 502 to divide the collateral into the auxiliary securities outlined above.
Otherwise,
A _CGT −B _CGT > X ′ (where X ′ is a positive real number) and A _IT −B _IT > Y ′ (where Y ′ = X ′ + Z, Z is a positive real number)
If so, the AMS 500 sends a command to the AMD 502 to divide the collateral into the auxiliary securities outlined above.
Otherwise, bypass this process.

  After the initial securitization, any future preferences regarding the ideal tax structure (eg in terms of regulatory changes) presented to IID 102 will be dynamically reviewed by AMS 500, which triggers the appropriate threshold. At the same time, if the constraints defined by IM are satisfied, based on these preferences, instructions regarding element decomposition of future pools by the ASS 400 are returned from the AMS to the IID 102.

6.2 Yield Profile The term “yield” is used to mean cash payments made to a long-term holder over time by a pool or similar investment instrument (technically, this is ) Divided by the value of funds. Some investors prefer high yields overall, or high yields at certain times, while others prefer a different approach (i.e., payments are reinvested by the pool and the return is pooled) Would like to gain in the form of an increase in the value of). Similarly, some investors prefer yields that are less variable, while others prefer a particular yield at a particular time, perhaps in line with other debt they receive. Of course, it is necessary to distinguish between yield preferences that arise from tax considerations and yield preferences that are purely motivated by expectations regarding the timing of future cash receipts.

  To give a relatively simple example, a pension fund that pays a suitable pension includes a stable and predictable cash flow whose return on investment management business matches its liability to the unitholder (eg pensioner). A flow is needed. These funds tend to prefer a stable yield over the investment period. In contrast, cash distributions paid to the underlying securities (receipts received on retirement pension funds) need to be reinvested at an intermediate transaction cost as estimated. Yes, retirement pension funds that do not have immediate debt may prefer a yield that is none or close to it, because it is not necessarily an asset class with comparable performance characteristics. High yields in this situation are considered a serious performance loss. Several ways in which the integrated system 600 can handle these issues both in the pooling of the ASS 400 just prior to the securitization event and thereafter at the secondary market portfolio level where the burden of responsibility in this case is on the AMS 500. Exists.

Perhaps the most obvious embodiment that matches the yield preference at either of the two bifurcations is that either ASS 400 or AMS 500 is a straight between two parties that have yield preferences at essentially different ends of the region. Providing a swap swap facility (this measure is of course the integrity of the original investor information supplied to ASS 400 or AMS 500 via IID 102, as determined by IM, and this Based on any constraints imposed on the AMS to perform such operations). Obviously, if one investor prefers yields and another investor prefers capital gains (for reasons other than taxation), if the two parties can reach a mutually agreeable price, then the transactions they have obtained Gain. One way to do this is for the ASS 400 or AMS 500 to handle a simple transfer from one investor to another, so that an investor 191A with a yield preference can make other investments in the fund. Instead of exchanging ("swapping") some of the units underlying house 191B, you will "acquire" yields from other investors 191B. With regard to organizing whether to trade yield preference, the following decision steps can be taken.
If Yield _A -Yield _B > X, then the investor 191A and 191B are provided with dividends on capital swaps. Where Yield _A and Yield _B are the yield preferences of investors 191A and 19IB, and X is the differential preference tolerance parameter.

For investors who prefer a relatively stable yield over the life of the pool, a reasonable and simple mechanism to increase yields over the years when yields are low is a debt (or leverage) that can be repaid when yields increase. ). Again, the ability of the AMS 500 to implement such an attempt is based on any constraints imposed on the AMS by the IM. Assuming that the IM defines an acceptable debt-equity ratio, there are various forms of debt that the AMS 500 can instruct the ASS 400 to introduce to facilitate pool distribution over time. In either case, the pool is effectively borrowed from the debt provider when the yield is low and pays equity participants in a few years and repays debt plus interest from time to time when the yield is relatively high. Agree to If equity investors do not believe that too much risk is due to increased leverage, the process of allowing AMS 500 and ASS 400 to reprocess cash flows to more closely match their preferences increases the value significantly. The above formula can be expressed as
(Target yield)-(Actual yield)> X (where X is the investor's tolerance)
If so, introduce debt. The amount of debt financing introduced is bounded by the investment mandate. The target amount of debt financing to be introduced is sufficient to ensure that (early target yield-actual yield) = 0. To illustrate a very simple example, assume that a single pool contains only one EFM and that the home on which this EFM is based is known to be sold in two years (fully distributed) A pool that is statistically large enough to predict the timing and value of future sales). Further, it is assumed that the contract face value on the first day is $ 100. Assume that at the end of two years, the contract will return the principal of $ 100 and the appreciation of $ 20 with considerable accuracy. At the end of the year, a closed-end pool with no leverage will repay the zero yield (ie, not pay dividends to investors at the end of the year). Now consider another scenario: At the end of the year, the pool borrows $ 5 as debt at a rate of 10% / year that can be repaid in one year. This gives $ 5 as a dividend to investors. At the end of two years, the pool returns $ 5.50 ($ 0.50 interest) and pays the remaining $ 114.50 to the investor. It is not difficult to see that yields have been smooth over the last two years by introducing debt.

  Another way that debt can be introduced into the pool is by simply borrowing on the first day and purchasing more assets. Assuming that the cost of debt is less than the total return generated by the underlying pool, such an approach increases the expected yield (and capital appreciation) of the pool over its useful period. This procedure, when combined with the mechanism outlined above, can smooth the pool yield when investors show their preference for this.

  Also, a series of derivative products based on the underlying EFM contract can also be processed by ASS 400 or AMS 500. Almost like the simple example above, the cash flows that become investor's can be constructed to better support their preferences. For example, an investor who does not want to take the risk associated with the rate of volatility associated with yield may enter into a “fixed-for-floating” swap with a third-party organization for which ASS 400 or AMS 500 provides intermediary services. it can. That is, the external derivative provider takes the risk associated with yield fluctuations and is willing to pay a fixed yield / period to the underlying investor of the pool (reserving the right to all principal returns). Investors who do not want to take any risk may find it advantageous to conclude a “total return swap”. These products are well known in financial markets dealing with other underlying assets, but have not yet been developed for financial securities, including packaged EFM. The general economic term for total return swap is quite simple. One party returns for the price, ie the return paid to the counterparty (which is generally less than the expected return and this difference is the premium that will be that of the first party who has agreed to assume all risks ) Bears all the risks involved.

  In summary, investor yield preferences are handled by ASS 400 and AMS 500 by interfacing these systems with AMD 502, IID 102, and TID 112, as well as those where more efficient tax structures were developed. However, rather than dividing the financial rights as in the taxation method described above, new financial claims (eg, debt) are added to the pool at various stages to meet investor wishes. This can be done immediately prior to securitization, in which case the transaction is managed exclusively by ASS 400 or after this date, in which case the transaction is sent to AMS 500 according to some IM constraints. Motivated by the relayed instructions.

6.3 Long-term decentralization The diversification benefits gained by investors in the pool managed by AMS 500 are partly realized through the asset selection and securitization process, but the asset's new tranche is continuously There are potentially significant gains that can be obtained with open-ended frameworks. The profit gained in this regard consists of two elements. (1) Transverse decentralization by simply increasing the size of the pool (which affects the risk-return profile of the pool in three dimensions: (i) the number and type of underlying assets (Eg single-family, two single-family homes and apartments); (ii) number and type of households (eg first buyers, middle-aged residents, and elderly homeowners); and (iii) these The number of geographic areas (eg, Sydney, Melbourne, Brisbane, Adelaide, and Perth) in which the household and its property are located, and (2) a time series by originating a new bundle of assets during different time periods Decentralization (eg, in the first year, ASS 400 can put 10,000 EFMs into an open-ended pool; S400 can be further commanded to apply a 10,000 contract (hence 10,000 property) to; in the third year, it is possible to continue this process, it is same hereinafter). In such a situation, the dependence on the investor's property value increase in a particular year (eg, the first year) will be in the next period (eg, 1, 2, 3, ..., N years). Substantial mitigation by continuously adding new tranches of assets generated.

  The IID 102 linked to the TIS 100 and also linked to the TID 112 through this system allows investors to choose from a wide range of investment methods (eg, open-ended or closed-ended, as well as the extent they prefer cross-sectional and time-series decentralization) ) Is expected to choose. On the other hand, certain classes of investors effectively have the opportunity to build their own personal portfolio and determine specific weights for the pool for various housing types, consumer cohorts and geographic regions. In the money management industry, this would be similar to a “professional” wholesale investment mandate, where the characteristics of the investment instrument are specially customized to suit the preferences of one particular institution. Yes. This subject has been described in more detail in the discussion of TIS100 in this application.

For investors who have presented ongoing time series decentralization preferences through IID 102, their initial and latest preferences are stored in this database and communicated to TID 112, which directly interfaces with AMS 500. If an existing secondary market pool investor wants a new tranche of assets to be added to their funds, AMS 500 learns these expectations through the same process and then sends the investor's instructions through ASS 400 However, additional packages of contracts are introduced into the current pool rather than simply being placed in a new structure or means. As above, the operation of AMS 500 will be bounded by any constraints imposed by the IM that interfaces through AMD 302. The algorithm that AMS uses to implement these preferences can be built along the following rough lines:
Search for TID112,
If long-term decentralized preference = "yes"
Search for a long-term decentralized preference of AMD 502 and output AMD 502 to an existing pool (also stored in a cell of AMD 502).
Otherwise, if long-term preference = "No",
Bypass the process and loop.

Summary of Acronyms AMS 500 Asset Management System AMD 502 Asset Management Database AOD 202 Asset Origination Database AOS 200 Asset Origination System AServS 300 Asset Servicing System AServD 302 Asset Servicing Database ASIP 301 Asset Servicing Information Provider AS 400 Asset Securities System AWD 210 Asset storage database IID 102 Investment information database IIP 101 Investment information provider IMIP 501 Investor market information provider MMIP 201 Mortgage market information provider TID 112 Target investment database TIS 100 Target investment system UCP 211 Underwriting capital provider

  The methods and processes described above with respect to FIGS. 2, 3 and 4 are preferably implemented using a conventional general purpose computer system 60 as shown in FIG. 5, which is performed within the computer system 60. It is implemented as software such as an application program. Specifically, each stage of the process is performed by software instructions executed by a computer. The software is divided into two separate parts; one part is for performing a specific process and the other part is for managing the user interface with the user. Can do. The software can be stored, for example, in a computer readable medium including a storage device described below. The software is loaded into the computer from a computer readable medium and then executed by the computer. A computer readable medium having such software or computer program recorded on it is a computer program product. The use of a computer program product in a computer preferably provides an apparatus that is advantageous for carrying out embodiments of the present invention.

  The computer system 60 includes a computer module 61, input devices such as a keyboard 62 and a mouse 63, and an output device including a printer 65 and a display device 64. A modem module transceiver 16 is used by the computer module 61 to communicate with a communication network 80 that can be connected, for example, via a telephone line 81 or other functional medium. Using modem 76, the Internet, as well as a local area network (LAN) or wide area network (WAN), each with its own corresponding modem 176, 276,. . . 976, etc., and data input terminals 162, 262,. . . 962, etc. Other computers 160, 260,. . . Other network systems such as 960 can be accessed. Each of the computers 160 to 960 is operated by the MMIP 201, for example.

  The computer module 61 typically includes at least one processor unit 65 and a memory unit 66 formed, for example, from a semiconductor random access memory (RAM) and a read only memory (ROM). Input / output (I / O) including a video interface 67, an I / O interface 73 for a keyboard 62, a mouse 63 and optionally a card reader 59, and another interface 68 for a modem 76 or optionally a camera 77. O) There is an interface. A storage device 69 is provided, which typically includes a hard disk drive 70 and a floppy drive 71. A magnetic tape drive (not shown) can also be used. The CD-ROM drive 72 is usually provided as a nonvolatile data source. Components 65-73 of computer module 61 typically communicate via interconnect bus 64 to produce a conventional mode of operation of computer system 60 known to those skilled in the art. Examples of computers on which the embodiments may be implemented include IBM-PC and compatible products, Sun Sparcstation, or similar computer systems developed from now on.

  Typically, the preferred embodiment application program resides on the hard disk drive 70 and is read and controlled when executed by the processor 65. Intermediate storage of programs and any data from the network 80 is accomplished using the semiconductor memory 66, possibly in cooperation with the hard disk drive 70. In some embodiments, the application program is encoded on a CD-ROM or floppy disk and read via the corresponding drive 72 or 71 or from the network 80 via the modem device 76. In addition, the software also includes magnetic tape, ROM or integrated circuits, magneto-optical disks, wireless or infrared transmission channels between the computer module 61 and another device, computer readable cards such as PCMCIA cards, and email transmission and web. The computer system 60 can be loaded from other computer readable media including the Internet and intranets containing information recorded on the site, and the like. The above is merely illustrative of related computer readable media. Other computer readable media can be implemented without departing from the scope and spirit of the invention.

  A digitally encoded electrical system that conveys information and produces one or more human readable or comprehensible indicators when the purpose of the computer system 60 is applied to an output interface (eg, display device 64 or printer 65). Don't lose sight of generating the signal (as shown in FIG. 6). For example, the electrical signal shown in FIG. 6 is a binary code signal 01001, and when applied to the display device 64 or printer 65, the indicator 9 is displayed or printed.

Alternatively, the process can be implemented in dedicated hardware such as one or more integrated circuits that perform the functions or subordinate functions of the process. Such dedicated hardware can include a graphics processor, a digital signal processor, or one or more microprocessors and associated memory.
The foregoing is merely illustrative of one embodiment of the present invention, and modifications obvious to those skilled in the financial and computer arts may be made without departing from the scope of the invention.
As used herein, the term “comprising” (and grammatical variations thereof) is used in a comprehensive sense such as “including” or “having” and not in an exclusive sense such as “consisting solely of”.

Attachment 1
Example of Portfolio Simulation Code The following is an example of a portfolio simulation code used by TIS 100 within a statistical utility known as SAS. In preparation for the more complex code below, we will first examine some generic code. A normal variate X of mean MU and variance S2 can be generated using this code: x = MU + sqrt (S2) ^* runor (seed), mean exp (MU + S2 / 2) and variance exp (2 ^* MU + 2 ^* S2) A lognormal variate X with exp (2 ^* MU + S2) can be generated using this code: x = exp (MU + sqrt (S2) ^* ranor (seed)) and the “rannor (seed)” component of the code Is a SAS random number generation operation.

The code below generates a data set “new2” that contains the target portfolio weight for each individual SLA in the country (ie, “sla105051100” is the field name and its value “0.00283363554” is the specific SLA Target weight). Near each target portfolio weight, TIS 100 can generate a random lognormal distribution of user-defined means and variances. This code shown below results in 10,000 iterations near each average / target portfolio weight with a variance of var = 0.0000000625 (done for (x <= 10000)). The selected variance is small so as to produce sufficient variance around what is a small average. All values in aqua are user-defined and consequently variable. The complexity added to the TIS100 model is that portfolio theory requires the sum of portfolio weights to be equal to one. Currently, another constraint on residential real estate is that individuals cannot hold short positions (ie negative weights). To somewhat exceed this component in the simulation, TIS 100 selects one SLA, the remaining SLA “sla805406719” to satisfy the portfolio and residential property theory. In this code, no distribution occurs until the sum of all portfolio weights is 1, and the iteration generated for the SLA “sla805406719” is bounded by a user-defined tail distribution, in this case “0 <Z805406719 <0.002836355 ". These numbers are selected assuming that the SLA “sla805406719” should be distributed around 0.0002832844, so that the specified boundary gives a large distribution of feasible values.
As a result, the calculated weight is entered into the portfolio return and variance calculation, in this case 10,000.

Attachment 2
Example of TIS100 target portfolio output

例２：甲が乙に５０，０００ドル（即ち、５００，０００ドルの財産の査定額の１０％）を貸付けたことを除き、例１と同じ事例の場合には、計算は以下のようになる：
（ａ）返済期日の財産の査定額が６００，０００ドルまで増大した場合には、負債総額は、甲が乙に貸付けた元々の５０，０００ドルプラス財産の１００，０００ドルの査定額増大の２０％（即ち、２０，０００ドル）に等しい増価支払を含む。従って、負債総額は、７０，０００ドルである。
（ｂ）返済期日の財産の査定額が４００，０００ドルまで減少する場合には、負債総額は、甲が乙に貸付けた元々の５０，０００ドルから財産の１００，０００ドルの査定額の減少の１０％（即ち１０，０００ドル）に等しい減価割引を引いたものを含む。従って、負債総額は低下し、４０，０００ドルになる。
（ｃ）返済期日の財産の査定額が５００，０００ドルで同じままの場合には、負債総額は、甲が乙に貸付けた５０，０００ドルに等しい。従って、負債総額は、同じままである。
増価支払はまた、以下の式で表すことができる。

式中：
ＲＡは増価支払
Ｉはローン額
ν_eは登録額
ν_rは返済額
である。
同様に、減価割引は次の式で表すことができる。

式中：
ＲＤは、減価割引
Ｉは、ローン額
ν_eは、登録額
ν_rは、返済額
である。 Attachment 3
Example of an equity financial mortgage agreement

[Lender name]
ABN []

Loan agreement

General terms

[Month] 2005

About this Agreement
  This Agreement consists of two documents: “Details” and their “General Terms”. These should be read together.

  The loan contract document is legally binding on Party A only if Party B has signed an application for “details” and Party A accepts the application.

  The meaning of the terms printed here and some other keywords are explained at the end of these "general terms".

Table of contents page
Loan amount acquisition procedure
1 Loan amount lending procedure 1
2 What you need to do first 1
Payment obligation and due date
3 Payment obligation 1
4 Repayment 1
5 Other amounts 1
Depreciation payment and depreciation discount
6 Requirements for paying appreciation 2
7 Right to depreciation discount 2
8 Calculation of depreciation payment and depreciation discount 2
9 Improvement 4
10 Property Evaluation 5
Early repayment
11 Early repayment 6
default
12 If you fail to do so 6
13 What can happen next 7
14 Past due interest 7
General information
15 Consumer Credit Code 8
16 Opening loan accounts and accounting transactions 8
17 Consent matters 8
18 How to exercise your rights 8
19 Blank 9
20 Certificate of Exhibit 8
21 Transfer 9
22 Notification, other contact and document services 9
23 Change 9
24 Governing Law 10
25 Meaning of terms 10
Appendix 1 “1/2/1 Rules” Operation Method 13
Attached Table 2 Examples of deductions for improvement 16
Things to know about the proposed credit loan agreement 18

[Lender's name]
Loan agreement
General terms
  Loan amount acquisition procedure
1 Loan amount loan procedure
1.1 Party A agrees to lend the loan amount to Party B when requested by Party B. The loan amount can only be used with one transfer. Except where the details indicate that the loan amount will be paid to another party, Party A will pay you money as directed by you or your agent.
2 What you need to do first
However, Party A will lend only in the following cases.
(A) When Party A receives the following, and Party A is in a satisfactory form
・ All collateral and related documents
・ Evidence documents for all insurances required by us (fire and all risks, general liability insurance, and separate property insurance, etc.)
・ All reports, evaluations or assessment results required by us
• Any other documents or information reasonably requested by us (such as property ownership surveys, planning certificates, responses to property appropriations, and priority agreements that regulate our interests based on collateral and any other mortgage holders) Including)
(B) Party B does not default on this Agreement (for example, Party B pays all relevant fees and charges and does not give misunderstandings to Finance or other information), and the person providing the collateral is concerned with the collateral If there is no default or withdrawal withdraw
Payment obligation and due date
3 Payment obligation
  Party B shall repay the total amount borrowed from Party A and other amounts in Sections 5 and 6.
4 Repayment
  Repayment date
4.1 Party B shall pay the total liability on the repayment date.
4.2 The repayment date is the earliest of the following:
(A) the date on which all of the interests of the property of the Company are transferred or transferred in good faith between independent parties
(B) the date on which the authority recovers or forcibly expropriates all or part of the property, or
(C) 25th anniversary from the date of registration, or
(D) If you die (or if you have two or more concession holders of property, the last person of you died), the earliest of the following:
・ The date of the next transfer or transfer of property after your death, or
・ Day after 12 months after the death of B (or the last one of B)
  You agree to notify us immediately after the occurrence of the event described in (a) or (b) above, or if you have a reasonable basis to believe that such an event is likely to occur. To do.

5 Other amounts
  In the event of a breach, enforcement costs may be payable under this Agreement or any mortgage or other collateral.
  Other amount to be paid
5.1 Party B shall pay Party A if Party A requests:
(A) all fees and charges in the circumstances indicated in “Details”, and any changes or new fees or charges notified to you;
(B) An amount equal to the official fee and tax for receipts or withdrawals under this Agreement, calculated in accordance with the relevant law. Without being bound by this obligation, you must pay the stamp duty imposed on credit operations (Queensland). These should be paid regardless of whether you are liable for these charges and taxes. ;
(C) any amount spent by us if we take over any work, including approval work, as a result of your failure to comply with any collateral-based requirements;
(D) Our reasonable costs to obtain consent, monitor or take other measures in connection with any work; and
(F) If reasonably required, any reasonable expense that you will bear for good reasons when you execute this Agreement or collateral after your default.
    (This includes: (i) In the case of mortgages, the costs incurred to preserve and maintain the property, such as by paying insurance for the property, local and national taxes; and
    (Ii) Use of former staff and equipment)
  If we later discover that these payments were not required to be paid (for example, you renewed insurance for the mortgage property but you did not notify us, Including any amount paid by us if we reasonably admit that it should pay it or that it is possible.
  Changes in fees and charges
5.2 The amount of fees and charges as of the date of disclosure are shown in “Details” to the extent known.
  By giving prior notice to you (in writing or in a newspaper advertisement), Party A can change the amount or frequency of any fees or charges and impose new fees or charges. Some changes in public fees and charges will be announced by the government, not by Party A.
  Information on current fees and charges is available on request upon request.
  Depreciation payment and depreciation discount
6 Requirements for paying depreciation
  Party B shall pay an increase payment if the repayment amount is higher than the registered amount.
7 Right to depreciation discount
7.1 If the assessed value of the repayment date is lower than the registered amount, Party B may obtain the right to adjust the total debt amount with a depreciation discount according to the “1/2/1 rule” described in Section 8. it can.
7.2 Party B will not be entitled to a depreciation discount if it pays in advance the total amount of debt before the repayment date, or if the total amount of debt is due immediately in accordance with Section 13.
8 Calculation of depreciation payment and depreciation discount
8.1 Except for the default by Party B, Party A will not charge you for the amount lent to Party B under this Agreement. In the event that you are in default, Party A will charge you at the arrears rate for the amount specified in this Agreement.
8.2 Total debt may increase or decrease from the initial loan amount depending on:
(A) the difference between the registered amount of the property and the repayment amount; and
(B) Whether it was necessary to pay some other amount (for example, if you default)
8.3 When Party B pays the total amount of debt, if Party B does not have the right to receive a depreciation discount in accordance with the “1/2/1 Rules”, Party B shall Increase payments shall be paid in accordance with “2/1 rules”.
8.4 If Party B chooses early repayment under section 11 or if the total liability is due immediately under section 13, it will be described in another rule, section 8.9 The “1/2/0 rule” is applied. You still have to pay depreciation payments under the “1/2/0 rule” but you are not eligible for depreciation discounts.
8.5 “1/2/1 rule” is operated as follows.
(A) If the repayment amount is greater than the registered amount, the appreciation payments that must be paid is twice the ratio of the loan amount to the registered amount multiplied by the difference between the repayment amount and the registered amount .
(B) If the repayment amount is less than the registered amount, the depreciation discount is equal to the ratio of the loan amount to the registered amount multiplied by the difference between the registered amount and the repayment amount.

  Assume that the loan amount is 20% of the registered amount (in other words, the mortgage has a loan-property ratio of 20% on the date of registration). Applying the “1/2/1 rule”, you will be required to pay us on the maturity date the loan amount we initially loaned to you, adjusted to reflect the following three alternative scenarios: Will be.
(A) If the repayment amount of the property is larger than the registered amount, Party B shall pay an increase in payment equal to 40% of the loan amount plus an increase in property value.
(B) If the amount of repayment of your property is smaller than the registered amount, you will pay to us the loan amount minus 20% depreciation discount for the decrease in property value. Or
(C) If the repayment amount of your property is the same as the registered amount, you will pay the original amount lent to us by us.
  The description of “1/2/1” derives from the relationship between a 20% loan, a 40% share of gain, and a 20% share of loss (ie, 20/40/20 or 1/2/1).

8.6 If the loan amount is other than 20% of the registered amount, the amount calculated under the “1/2/1 rule” (and any depreciation payments or depreciation discounts) will vary proportionally. For example, suppose that the loan amount was only 10% of the registered value of the property of B (that is, 1/2 of 20%). As a result, if the repayment amount of the property is larger than the registered amount, Party B will pay a price increase equal to 20% of the loan amount plus the value increase, but if the repayment amount of the property is smaller than the registered amount Will pay Party A minus the loan amount minus a depreciation discount equal to 10% of the depreciation of that value.
8.7 Appendix 1 contains several examples showing the application of the “1/2/1 rule”.
8.8 The “1/2/0 rule” is operated as follows.
  If Party A prepays the loan amount based on Section 11 or if the total amount of debt is due in accordance with Section 13, if the repayment amount is greater than the registered amount, Is twice the ratio of the loan amount to the difference between the repayment amount and the registered amount.
  If Party B prepays the loan amount based on Section 11 or if the total amount of debt is due in accordance with Section 13, there will be no depreciation discount even if the repayment amount is smaller than the registered amount.
  Assume that the loan amount is 20% of the property registration amount (in other words, the mortgage loan to property value ratio is 20% on the registration date). With this assumption:
(A) If the repayment amount of the property is greater than the registered amount, you will pay Party A a depreciation payment equal to 40% of the loan amount plus an increase in the value of the property;
(B) If the repayment amount of the property is smaller than the registered amount, Party B shall pay Party A the initial amount lent to Party B.

8.9 If the loan amount is other than 20% of the registered amount, the amount calculated based on the “1/2/0 rule” fluctuates proportionally. For example, it is assumed that the amount lent to B is only 10% of the registered value of B's property (that is, 1/2 of 20%). As a result, if the repayment amount of the property is larger than the registered amount, Party B shall pay an increase payment equal to 20% of the loan amount plus the increase in value. However, if the repayment amount of the property is smaller than the registered amount, Party B shall pay the loan amount to Party A.

8.10 If the assessed value of the property remains the same on the date of registration and the prepayment date, the total liability amount under the “1/2/0 rule” is again the loan amount (ie, the registration Equal to 10% of the assessed value of the property of the day).
8.11 Each time it is necessary to seek an assessment amount under this Agreement, Party A may obtain a qualified assessment at the expense of Party B and request a depreciation payment or depreciation discount (if any).
9 Improvement
9.1 Before Party B conducts or authorizes work or enters into a contract to carry out such work, it is agreed to by Party A and the authorities (and the governing body if the property is part of a joint plan). All necessary approvals shall be obtained.
9.2 If the amount spent by you on all approvals exceeds the prescribed amount (you shall demonstrate such amount by providing us with a copy of a bona fide tax claim) You can seek credit for any increase in the value of property resulting from the approval process by adjusting the repayment amount.
9.3 However, in order to receive a deduction for improvement, Party B must:
(A) ensure that this work is an approval work; and
(B) obtain a qualified assessment of the property on the date of commencement of work; and
(C) complete this work within six months of commencement, unless we allow you to extend the time period at your absolute discretion; and
(D) obtain another qualifying value of the property on the date of completion of work; and
(E) Make a request to Party A to give you a deduction for improvement (evidence that the improvement has been carried out in accordance with the plans and specifications approved by Party A and relevant authorities and has been found suitable for residence. Need to include); and
(F) provide you with a report of the findings, upstamping evidence of all collateral, a certificate of compliance, and increased insurance coverage and all other information reasonably required by us;
9.4 Under Section 9.2 of this Agreement, you may not qualify for the deduction unless you spend at least the prescribed amount for approval. However, all deductions are calculated by referring to the value added to the property due to the improvement. In other words, the second party needs to reach the threshold amount in order to qualify for the improved deduction, but the deduction is not related to the amount spent by the second party.
9.5 The prescribed amount is obtained from a bona fide tax invoice. This means that if you do the work yourself without hiring a contractor, your qualified expenditure will be limited to the cost of goods, services and materials purchased by you. The labor value of B is not included in the account at the specified amount.
Deduction calculation
9.6 It is assumed that at certain times during the loan period, you will make improvements with your consent, and you will be eligible for deductions under this Section 9. Any increase in property value resulting from these improvements (improvements) will be determined by comparing the qualifying values obtained before and after the improvements. On the repayment date, Party A will give a deduction to Party B (subject to the following eligibility) for the improvement. Party A will give a deduction to B by reducing the repayment amount used in the “1/2/1 rule” by the deduction amount.
  That is, the repayment amount is reduced by the difference between the property assessment amount as of the work start date before the improvement is started and the property assessment amount as of the date of completion of the operation.
9.7 Despite section 9.6, the deduction for improvement will not reduce the repayment amount below the registered amount.
9.8 Appendix 2 contains several examples illustrating the application of this Section 9.
9.9 B shall:
(A) ensure that work complies with all laws, authorities' requirements, easements and seal agreements; and
(B) Ensure that work is qualified by an accredited contractor in accordance with the plans and specifications approved by Party A, insured as required under all laws and completed within a reasonable time; and
(C) obtain and provide to us the relevant certificates and permits required by us (satisfied completion and compliance certificate, residence permit, and insurance contract); and
(D) Comply with all conditions of our consent.
9.10 If Party B fails to comply with Section 9.9, whether Party A takes over the work in accordance with Party A's rights under collateral,
(A) You may not claim a deduction for the amount spent by you under work 9.2 and 9.3; and
(B) In order to prevent copyright violations, B shall transfer all licenses or copyrights to Class A.
10 Property evaluation
10.1 All valuations related to this Agreement (including all that were made prior to the conclusion of this Agreement) shall be performed by an evaluator selected from the approved evaluators in our Registry. To do.
10.2 Valuation is based on the fair market value of the property, which is the price that a willing but unwilling seller will receive from a willing but unwilling buyer is there.
10.3 An evaluation or decision following the process described in this section is a qualified evaluation.
10.4 You will be involved in the evaluation process, including ensuring that evaluators and other consultants are not prevented from accessing the property, and providing you with other information reasonably required by us. Fully cooperate.
10.5 If the property is purchased or sold in the open market, you may choose to accept the consideration indicated on the text of the relevant contract as the reasonable market price of the property (date of transfer). it can.
10.6 Party B must consult with Party B before selling the property. (This allows Party A to discuss various procedures, rights and obligations under this mortgage, including how to calculate the assessed value of the property.) Reasonable measures shall be taken to obtain market prices.
  If we consider that the property has been sold below the fair market price, we can request an evaluation.
10.7 Party B shall provide the following to Party A:
(A) One such contract:
・ Certified as correct and complete by a lawyer or certified real estate transfer professional lawyer; and
• Declared by you to show the full consideration paid and received with the sale;
as well as
(B) any other information that you have or have access to and that is relevant to the value of the property (for example, reclassification of actual or anticipated areas, or Or information on the development of other property proposals that may have a positive impact)
10.8 We will be one of our approved price assessors as of either or both of the date of registration and repayment date, or any other date on which the property is purchased or sold if: You can be instructed to evaluate your property.
(A) if we consider that for any reason the consideration shown on the text of the contract may not be the fair market value of the property or the full consideration paid or received; or
(B) If the property is acquired or sold other than by an independent party contract that is effective by you (for example, if it has been transferred to you by a relative, or if you have been forcibly acquired by you, or If transferred by a will executor).
10.9 You will pay the cost of this evaluation and any inspections necessary for this.
10.10 If you do not agree to the assessment, you will ask Party A to appoint another approved price assessor to perform the second assessment as well, at your expense. be able to.
10.11 If the second valuation is different from the first valuation, the fair market value of the property shall be either the midpoint between the two assessed values or the consideration indicated on the text of the contract . Alternatively, Party A may choose to exercise the provisions of Section 10.13.
10.12 Except as provided in Section 10.13, you will pay any valuation required for this Agreement. For example, if Party B wishes to make a prepayment pursuant to Section 11, it shall obtain a qualifying value and seek any depreciation payment. If you do not agree to an evaluation under this Agreement, you will have Party A nominate another approved price assessor at your expense and conduct a second evaluation. Can be sought.
10.13 If you choose (behave reasonably), you may ask for one or more other valuations at your expense. As a result, the value of the property becomes the two closest midpoints among all the evaluation values obtained based on this separate table.
10.14 All qualifications are considered qualifying as of that date if the specific date is within 42 days before or after the evaluation date.
Early repayment
11 Early repayment
  Amount and timing that you can prepay
11.1 You may pay the total liability at any time before the repayment date in accordance with this Section 11 (limited to the total amount of the liability).
11.2 In order to prepay, Party B shall:
(A) You will notify Party A at least one month in advance of your intention to pay in advance and the scheduled date of advance payment; and
(B) Obtain a qualification as of the prepayment date (this is necessary to confirm the assessed value of the property)
  The finality of your decision
11.3 If you notify us of your repayment decision, you will not be able to change it, and you will pay on the prepaid date you told us.
  default
12 If you fail
  B will default in the following cases.
(A) If you have not paid without delay any amount due in accordance with this Agreement or another loan agreement entered into by Party B; or
(B) If you have implemented what you have agreed not to do or do not do what you have agreed to do;
(C) If you or another person provides us with information that gives errors or misunderstandings regarding this Agreement or Collateral; or
(D) Regardless of whether or not any mortgage holder (excluding Party A) of the property exercises the right to exercise mortgage or the right to lose the right of repayment through trading, the other security interests that affect the property The default; or
(E) if Party A reasonably admits that Party B or another person acting on behalf of Party B has committed fraud in this contract or collateral; or
(F) if you reasonably admit that you knew or should have reasonably knew that the registration amount was not the fair market price of the property as of the date of registration; or
(G) If you or the collateral provider become insolvent or take measures to do so; or
(H) any other person (whether or not it means acting on behalf of Party B or acting as Party Will Enforcer, Will Administrator, or Trustee at the time of bankruptcy) Or if a part of it is transferred or assigned; or
(I) If you transfer or assign less than all of your property; or
(J) When Party B transfers or assigns all or part of the property other than in good faith transactions between independent parties; or
(K) Unless Party A waives this request in writing, you stop living in the property as your primary place of residence; or
(L) If you declare a trust for all or part of the property or any property right or interests you own in the property; or
(M) The second party or collateral provider has defaulted on the collateral, raised the collateral, violated its provisions, or the collateral is not enforceable or may not be enforced.
13 What can happen next
  Notification and grace period
13.1 In the event that you are in default, Party A may send you a notice stating your default.
  If you do not correct or cannot correct the default within the grace period indicated in the notice or required by law (or if you fail again for the same reason at the end of the period) The total liability will be due immediately without further notice to you at the end of that period (only if the due date has not yet arrived).
  As a result, Party A can sue Party B against the amount and / or enforce any collateral or both.
  Notification and grace period exceptions
13.2 In limited circumstances as required by law (for example, if you are unable to determine your location), you do not need to notify or wait until the end of a certain grace period indicated in the notice There is no. In the event that Party B fails, the total amount of debt will be due immediately without notice.
  As a result, Party A can immediately sue You against the amount and / or enforce any collateral or both.
14 Past due interest
  Under this Agreement, you can impose an arrears interest rate if payments are defaulted.
  Past due interest
14.1 If you fail to do so, you can impose a daily arrears rate as described in “Details” for some amount while the due date is over.
  Note: The past due amount subject to late interest is the liability if the total liability is due in accordance with Section 13 (for example, because you do not correct the default within the grace period) and you do not pay immediately. The total amount can be included.
  Capitalization of past due interest
14.2 If you do not pay these past due interest rates, we add this past due interest to the past due amount every month (this is known as “capitalization”). As a result, you are responsible for paying the arrears interest for the new amount due.
  Late interest rate
14.3 The Late Charge Rate is the 90-day Bank Bill Swap Reference Rate announced in the latest Australian financial review prior to the date of payment of the amount due. If not, it is 4% higher per year than another interest rate that we have set sincerely. Late interest accrues daily from the default date (including this) to the actual payment date (not included). Late interest is calculated at 365 days a year against the actual number of days that have passed.
  Unaffected debt
14.4 The installment payments obligations of B shall not be terminated by this section.
  General matters
15 Consumer Credit Code
  This section applies to the extent that the Consumer Credit Code applies to this Agreement.
(A) or if this Code makes the provisions of this Agreement illegal, invalid or unenforceable; or
(B) or if the provisions of this Agreement violate the requirements of this Code or impose debts or liabilities prohibited by this Code,
This Agreement shall be read as amended to the extent necessary to comply with the Code, or omitted if necessary.
16 Opening loan accounts and accounting transactions
16.1 You will open a loan account in the name of You and you must pay under this Agreement after the date and the amount borrowed by You and the due date on the first day of loan by us without notifying you Give the authority to debit each part of the amount.
16.2 Party A may designate a date that it deems appropriate for a loan account (except that in the case of a credit, it cannot be earlier than the date on which the related transaction takes place).
  However, Party A will credit your loan account as soon as possible after Party A (not the other party) has actually received the payment. This is not necessarily the same as your payment date.
16.3 After this, we will debit and credit your loan account and your debt account liability in order to accurately reflect your legal obligations (for example, due to errors or non-payment of checks). You can adjust your balance. If Party A does this, Party A may make an indirect correction (including late interest charges).
16.4 Unless otherwise specified, we may use any payment received in connection with this Agreement to reduce the total liability in any order we choose.
16.5 [I will provide you with a loan account statement every six months until you have no debt balance in your loan account (generally July and January). ]
17 Consent
  You will comply with all the conditions and requirements of any consent given by Party A.
18 How to exercise your rights
18.1 You may exercise your rights or remedies in any way we consider appropriate, including imposing conditions, or give or refuse your consent.
18.2 If Party A does not exercise its right or remedy completely or at a given time, Party A may exercise it afterwards.
18.3 Our rights and remedies under this Agreement and any collateral are in addition to other rights and remedies granted by law independently.
18.4 Our rights and remedies are
・ One of our directors, or
・ Any other person whom you have given authority
Can be exercised on behalf of the former.
18.5 Party A is not liable for any loss resulting from the exercise or attempted exercise, failure to exercise, or delay in exercising rights or remedies.
18.6 You should be able to do anything that you should do under this agreement or collateral and that you haven't done yet or that aren't done properly in our findings. Party B shall pay Party A all of the amount that Party A spends or that Party A generates.
19 Blank
  You agree that we can fill in any blanks (approvals) in any document related to this Agreement.
20 certificates
  We may provide you with a certificate or formal statement of the amount or amount to be paid for this Agreement (including break costs). This is sufficient as evidence of this matter or amount unless proved to be wrong.
21 Transfer
21.1 Party A may assign or otherwise handle Party A's rights under this Agreement in any way deemed appropriate by Party A. You agree to be able to disclose any information or documents that you have found desirable to help us exercise this right. You also agree that we may disclose information or documents at any time to those who transfer our rights under this Agreement.
21.2 Your rights are intended for you and cannot be transferred without your written consent.
22 Notification, other contact and document services
22.1 Notices, certifications, consents, approvals and other communications regarding this Agreement will be made in writing unless Party A agrees otherwise.
22.2 Contact from us may be signed by any of our attorneys or any of our officers who are authorized to contact us.
22.3 You may contact you either:
(A) be handed; or
(B) Leave it at your last home or work address informed by Party A; or
(C) Finally mail to your post or home or work address informed to us; or
(D) Send the fax to your home or work fax number that was last informed by Party A.
22.4
  To contact us:
(A)
・ Any office that Party A told you; or
・ Exhibitor's registration office;
Leave or
(B) It shall be sent to either of these locations by prepaid mail or fax.
22.5 Contact: As provided on the following dates:
(A) In the case of communication by hand, the date listed in the communication or the date received by the addressee, whichever is later; or
(B) In the case of a contact by mail, the date listed in the contact or the date to be delivered by normal postal route, whichever is later; or
(C) In the case of a contact sent by fax, the date on which the report is sent or the date the contact is sent will produce a report indicating that the contact has been sent to the fax number or other number of the addressee. Whichever is later; or
(D) If you are contacted by newspaper advertisement, the date of the first announcement
22.6 We deliver all documents of litigation against you (including subpoenas, other origination processes, or third party or other party notices) to property or by depositing them there be able to. This section does not interfere with any other method of delivery.
22.7 Party B and Party A agree in good faith to exercise their respective rights under this Agreement and any collateral.
23 Change
  Party A may change any period of this Agreement. (If you apply the Consumer Credit Code to this Agreement, you may only do so in accordance with that Code). Party A will notify you before any changes become effective.
24 Governing law
  This Agreement is governed by the current laws of New South Wales. Party B and Party A will be subject to the non-exclusive jurisdiction of the court of the place concerned.
25 Meaning of terms
  The “1/2/0 rule” is described in Section 8.9. The “1/2/1 rule” is described in Section 8.5.
  “Assessed value” means, in terms of property, a fair market price agreed in writing by Party B and Party A, or if not agreed, confirmed by a qualified value.
  The appreciation payment means an amount calculated as the appreciation payment according to the “1/2/1 rule” or the “1/2/0 rule”.
  Approval work refers to the consent and authority of Party A (and the governing body if the property is part of a joint plan) before you perform or authorize the work or enter into a contract to carry out the work. ) Means all work with all necessary approvals.
  The liability balance of your loan account at any point in time means the difference between the total credited amount and the debited total amount for you under this Agreement. When calculating this amount at the end of the day, it includes all debits and credits secured on that date.
  Bank trading days mean Saturdays or Sundays, or holidays other than New South Wales, special holidays or days other than bank holidays.
  Business days mean Saturdays or Sundays or days other than New South Wales holidays or special holidays.
  Eligible valuation means valuation in accordance with the process described in Section 10 (including the appointment of a price assessor).
  Repayment date means the date on which the total amount of debt must be repaid in accordance with section 4.2.
  See Section 14 for late interest rates.
  The depreciation discount means an amount calculated as a depreciation discount according to the “1/2/0” rule.
  “Details” means the details of a loan contract that forms part of this Agreement.
  The date of disclosure is stated in “Details”.
  The date of registration means the date when you tell us to lend you a loan amount (although the actual date that we lend you a loan amount may be a later date) To do.
  The registration amount is the date of registration excluding the amount received by Party B or Party A or any other party related to the compulsory expropriation of the interest in the property (such as compensation when the property is expropriated for the road expansion plan) Means the assessed amount.
  The governing body means each entity that manages and operates all shared plans that divide assets.
  Improvement amount means any increase in property value resulting from any improvement made pursuant to this Agreement.
  Insolvent is an inspector who is appointed in control or insolvent, ie, bankruptcy trustee, bankruptcy trustee and management, clearing, and provisional clearing (each defined by the Companies Act Under the control of the business, organizing the business, protecting all creditors in accordance with all statutes in accordance with any settlement, transfer or debt exemption, and disbanding (other than rebuilding while having the ability to pay) Or it means a state where the debt cannot be paid on the due date.
  Loan account means the account that we have established in your name to record all transactions relating to this Agreement.
  The loan amount is described in “Details”.
  For the purposes of Section 9, the prescribed amount means the amount in Australian dollars as determined by us at appropriate discretion.
  Property means one or more of the following, as permitted by the situation:
・ Land listed on all collateral, and
-Each anchorage, building or improvement on or secured to the land; and
-Real estate rights and interests in your land, and any rights that may or may have arisen in connection with this.
  The repayment amount means the appraisal amount at any of the following times according to the regulations.
・ Repayment date; or
• the date on which Party B prepays the total liability prior to the repayment date in accordance with Section 11; or
• The date on which the total amount of debt is due immediately in accordance with Section 13.
  The repayment amount can be adjusted if a deduction is given to B under Section 9.
  Collateral means each security right listed under “Collateral” in “Details” as well as any substitutes or additional security rights granted in connection with this Agreement. The property is the subject of any mortgage of the property and is listed in the “collateral” section of “details” and includes:
・ Land listed on all collateral, and
-Each anchorage, building or improvement on or fixed to the land; and
・ Real estate and interests in your land and any rights that may or may arise in relation to this
-The right to movable property remaining on this property when Party A obtains ownership; and
・ Right to offset any money incurred by the mortgage holder from the amount secured by the mortgage
  A security interest means any collateral for payment of money or the performance of bond debt relationships including mortgages, charges, retention rights, personal property, trust or authority. The security interest also includes guarantees or loss compensation.
  Collateral provider means each person (other than B) who provides collateral.
  A shared plan means each plan or plan regulated by the Shared Planning Act that affects property. Examples of property that is often part of a shared plan are a compartmentalized residential unit, and a townhouse and an integrated property.
  Shared programming means any legislation offered to:
・ Sale and development of land by common property; or
・ Sale of buildings; or
・ Management of land that is sold and has shared property; or
・ Management of condominiums
  The total liability is, at any point in time, the outstanding balance of your loan account plus all the accrued interest, and any other amount that you have to pay under this agreement. Means the amount not debited (including depreciation payments) minus any amount not debited in your loan account (including depreciation discounts).
  “I” means “Lender Name” (ABN []) and includes its successor and assignee.
  What is work:
・ Building work; or
・ Drilling or civil engineering work on property, or
・ Work to dismantle, remove or modify some part of the property, or
Any architectural or development work required by the authorities for this property
Means.
  “B” means a person or a plurality of persons designated as “customers” in “details”. In the case where there are multiple persons, “B” means each of them individually and means all of the two or more together. “B” includes his successor and assignee.
  Related matters:
All matters include all and part of each; and
The document includes any variations or substitutions thereof; and
・ Law means common law, the principle of equity, and legislation created by the Diet (the legislation created by the Diet includes administrative rules and other legal documents based on them, and their merger, revision, re-enactment or replacement Included); and
The term “including” or “etc.” when presenting an example does not limit the meaning of the term in relation to that example or a similar type of example; and
-The term “person” includes individuals, companies, corporations, corporations with no legal character or public corporations.
  The singular includes the plural and vice versa.
  The headings are for convenience only and do not affect the interpretation of this Agreement.


  Appendix 1 “1/2/1 Rules” Operation Method
  The following example shows how the “1/2/1 rule” works. :
  Note: In the examples, the total amount of debt is due to the fact that Party A has spent money, for example, because Party B has defaulted, or because Party B cannot do anything under this Agreement and Party B has not repaid that amount. Assume that it has not increased under other terms of the contract.

  Example 1: Assume that Party L lent $ 100,000 on June 1, 2005, and that the assessed value of your property was $ 500,000 on the date of registration.
  Note: If B and A are unable to agree on the assessment amount, it will be set by the assessment process; the assessment amount may not be the same as the purchase price. $ 100,000 is equal to 20% of the value of the property, so the mortgage loan to property value ratio is 20%.

(A) If the assessed value of the repayment date property has increased to $ 600,000, the total liability will be equal to 40% of the original $ 100,000 loan plus the value gain between the two dates including. You must pay a $ 40,000 (ie 40% of the $ 100,000 value gain of the property) in addition to the $ 100,000 that you originally loaned to you. Therefore, the total debt will increase to $ 140,000.
(B) If the valuation of property due on a repayment date is reduced to $ 400,000, the total liability will be a 20% depreciation discount on the value loss between the two dates from the original $ 100,000 loan amount. Includes subtraction. Party A must bear a loss of $ 20,000 (ie 20% of the $ 100,000 decrease in value of property). Therefore, the total debt is reduced to $ 80,000 (that is, $ 100,000 originally loaned to B minus the loss of $ 20,000 incurred by Party A).
(C) If the assessed value of the repayment date property remains the same (ie, $ 500,000), the total liability is the original $ 100,000 loan amount. That is, Party B repays the same amount that Party A originally lent to Party B.
These three scenarios are shown in the table below.

Example 2: In the same case as Example 1, except that Party A loaned 50,000 dollars (ie, 10% of the assessed value of $ 500,000 property) to B, the calculation is as follows: Become:
(A) If the assessed value of the property on the repayment date increases to $ 600,000, the total amount of debt is the increase of the original assessed value of $ 50,000 plus $ 100,000 of the original property loaned to Party B Includes an appreciation payment equal to 20% (ie $ 20,000). The total debt is therefore $ 70,000.
(B) If the assessed value of the repayment date property is reduced to $ 400,000, the total liability will be reduced from the original $ 50,000 loaned by Party A to the assessed value of $ 100,000 of property. Minus a depreciation discount equal to 10% (ie $ 10,000). Therefore, the total debt will fall to $ 40,000.
(C) If the assessed value of the property on the repayment date remains the same at $ 500,000, the total liability is equal to $ 50,000 lent to us by Party A. Therefore, the total debt remains the same.
  Appreciation payments can also be expressed as:

In the formula:
RA pays up
I is the loan amount
ν_eIs the registration amount
ν_rIs the repayment amount
It is.
  Similarly, the depreciation discount can be expressed as:

In the formula:
RD is depreciation discount
I is the loan amount
ν_eIs the registration amount
ν_rIs the repayment amount
It is.

1 is a schematic flowchart of a prior art mortgage origination and securitization system. 2 is a schematic flowchart of an asset targeting, selection, servicing, securitization and portfolio management system of a preferred embodiment. 3 is a feedback loop extracted from FIG. It is a flowchart which illustrates an acceptance procedure. FIG. 2 is a block diagram of a computer system that can implement the methods and systems of the preferred embodiments. 2 is a graph of a representative digitally encoded electronic signal.

Explanation of symbols

100 Target Investment System 101 Investment Information Provider 102 Investment Information Database 200 Asset Origination System 201 Mortgage Market Information Provider 202 Asset Origination Database 300 Asset Servicing System 400 Asset Securitization System 500 Asset Management System 600 Integrated System

Claims (113)

A data processing system that evaluates consumer applications on a real-time or batch basis using a range of decision rules and allows a financial entity to conclude a financial agreement with a financial entity whose assets are used as collateral. The ultimate purpose of the entity is to accept or reject these applications,
(I) at least one data input terminal into which data relating to both the consumer and the requested fund are entered;
(Ii) the input terminal or data processing means connected to each of the input terminals;
(Iii) connected to the data processing means and collectively characterizing the financial portfolio of the financial entity, both initial portfolio data relating to the application received to date and necessary data relating to desired characteristics of the portfolio; Including data storage means;
With
When the application is accepted, the data processing means generates corrected portfolio data representing the portfolio by merging the input data and the portfolio data, comparing the corrected portfolio data with the necessary data, Sending a signal to accept the application only if the difference between the required data and the modified portfolio data is less than the difference between the required data and the initial portfolio data;
A system characterized by that. The financial agreement
(I) the financial entity provides funds to the consumer equal to a first percentage of the value of the asset; and (ii) if at least one preset condition occurs, The consumer adds to the financial entity a loan of the funds plus a second percentage of any increase in the value of the collateral asset or a third percentage of any decrease in the value of the collateral asset. Underwriting to repay and / or (iii) the consumer provides the financing of the funds plus the second percentage or minus the third percentage, plus the fourth percentage of the value of the collateral asset Undertaking repayment to the financial entity on a recurring basis throughout the term of the agreement, and / or (iv) the consumption Repayment to the financial entity on a recurring basis for the entire period of the financial agreement with a loan of the funds plus the second percentage or minus the third percentage, plus a standard floating interest rate or a fixed interest rate. Underwriting, and / or (v) the financial entity undertakes to compensate the consumer by offsetting the value of the improvements made to the collateral assets, and / or (vi) the consumer A clause allowing refinancing to any high priority financial agreement based on the formula / (e) that retains the value of the low priority financial agreement for the financial entity;
The system of claim 1, comprising:   The system of claim 2, wherein the second percentage is greater than or less than the third percentage.   The system of claim 2, wherein the third percentage is equal to zero.   The system of claim 2, wherein the first and third percentages are equal.   The system of claim 2, wherein the second and third percentages vary according to a preset state.   The system of claim 6, wherein the preset state is selected from the group consisting of achieving a preset economic condition or expiring a preset time.   The system of claim 2, wherein the second and third percentages are fixed until a preset time or state is reached.   9. The system of claim 8, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of a preset time.   The system of claim 2, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   The system of claim 2, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   The system of claim 2, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   The system according to claim 2, wherein the preset state is a sale of the collateral asset by the consumer.   The consumer at any time before the preset state expires a preset time, the consumer dies, achieves a preset economic condition, or expires the financial agreement. 3. The system of claim 2, wherein the system is selected from the group consisting of:   The system of claim 2, wherein the preset time is selected from a group consisting of any whole number of months or years. A method for accepting, rejecting or inquiring on a real-time or batch basis an application from a consumer to a financial entity for assets to be used as collateral,
(I) inputting data relating to both the consumer and the banker to a data input terminal connected to the data processing means to which the data storage means is connected;
(Ii) storing, in the data storage means, both initial portfolio data relating to the application accepted to date that collectively characterizes the financial portfolio of the financial entity and necessary data relating to desired characteristics of the portfolio; Stages,
(Iii) generating the revised portfolio data representing the portfolio by merging the input data and the initial portfolio data when the application is accepted;
(Iv) comparing the modified portfolio data with the required data;
(V) accepting the application only if the difference between the required data and the modified portfolio data is less than the difference between the required data and the initial portfolio data;
Including methods. The financial agreement
(I) the financial entity provides funds to the consumer equal to a first percentage of the value of the asset; and (ii) if at least one preset condition occurs, The consumer adds to the financial entity a loan of the funds plus a second percentage of any increase in the value of the collateral asset or a third percentage of any decrease in the value of the collateral asset. Underwriting to repay and / or (iii) the consumer provides the financing of the funds plus the second percentage or minus the third percentage, plus the fourth percentage of the value of the collateral asset Undertaking repayment to the financial entity on a recurring basis throughout the term of the agreement, and / or (iv) the consumption Repayment to the financial entity on a recurring basis over the term of the financial agreement for a loan of the funds plus the second percentage or minus the third percentage, plus standard variable interest rates or fixed interest rates Underwriting and / or (v) the financial entity undertakes to compensate the consumer by offsetting the value of the improvements made to the collateral assets, and / or (vi) the consumer. A clause that allows refinancing to any higher priority financial agreement based on the formula / (e) that retains the value of the lower priority financial agreement for the financial entity;
The method of claim 16, comprising:   The method of claim 17, wherein the second percentage is greater than or less than the third percentage.   The method of claim 17, wherein the third percentage is equal to zero.   The method of claim 17, wherein the first and third percentages are equal.   The method of claim 17, wherein the second and third percentages vary according to a preset condition.   The method of claim 21, wherein the preset state is selected from the group consisting of achieving a preset economic condition or expiring a preset time.   The method of claim 17, wherein the second and third percentages are fixed until a preset time or state is reached.   24. The method of claim 23, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   18. The method of claim 17, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   18. The method of claim 17, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   The method of claim 17, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   The method of claim 17, wherein the preset state is a sale of collateral assets by the consumer.   The consumer at any time before the preset state expires a preset time, the consumer dies, achieves a preset economic condition, or expires the financial agreement. 18. The method of claim 17, wherein the method is selected from the group consisting of:   18. The method of claim 17, wherein the preset time is selected from a group consisting of any whole number of months or years.   Finance to raise capital from a third-party provider and use the capital to fund a financial agreement that uses assets as collateral to provide capital to multiple consumers, each of which is one of the financial agreements The financial agreement is concluded only with respect to a selected consumer and / or selected collateral assets based on one or more characteristics of the collateral assets and / or consumers, A system characterized in that it is initially defined and / or modified over time based on preferences indicated by a third party provider of capital.   32. The system of claim 31, wherein the financial agreement is held by an investment instrument invested by a third party provider and / or other entity of the financial capital.   The system of claim 32, wherein the investment instrument is closed and includes a fixed collection of the financial agreements.   33. The system of claim 32, wherein the investment instrument includes the set of financial agreements that are open and to which additional financial agreements are added as appropriate.   35. The system of claim 34, wherein the characteristics of the additional financial agreement become different from the initial financial agreement as a result of a change in preferences exhibited by the investor.   36. The system of claim 35, comprising a feedback loop.   The collateral asset is a real estate asset, and the property of the real estate asset has a current value, an expected future value, a past return, a past relative return, an expected future return, an expected future relative return Past risk, past relative risk, expected future risk, expected future relative risk, past correlation with other real estate assets, expected future correlation with other real estate assets, Purchase by auction, purchase by individual treaty, geographical location, title ownership, asset type, real estate burden, land size, direction of magnetic needle, size of building, number and type of rooms, number of floors and building materials 32. The system of claim 31, wherein the system is selected from the group consisting of:   The consumer characteristics are current income level, past income level, gender, age, spouse relationship, employment relationship, previous borrowing history, previous ownership history, current address, nationality, past collateral asset maintenance performance, 32. The system of claim 31, wherein the system is selected from the group consisting of: and expected future collateral asset maintenance performance.   32. The system of claim 31, wherein at least one of the financial agreements is a mortgage. The mortgage is
(I) the mortgage holder finances a mortgage holder with funds equal to a first percentage of the value of the property asset used as collateral for the mortgage; and (ii) at least one preset The mortgage holder will add a second percentage of any increase in the value of the collateral property asset to the loan of funds or the decrease in the value of the collateral property asset. Undertaking to repay the mortgage holder minus a percentage of 3; and / or (iii) the mortgage holder will provide a loan of the fund plus the second percentage or minus the third percentage Plus a fourth percentage of the value of the collateral property asset over the period of the financial agreement Undertaking a repayment to the mortgage holder at the time of payment, and / or (iv) the mortgage setter may provide a loan of the fund plus the second or minus third percentage, Underwriting supplementary payments on fixed interest rates to the mortgage holder on a recurring basis throughout the term of the financial agreement, and / or (v) the mortgage holder Undertaking compensation to the mortgage setter by offsetting the value, and / or (vi) an expression in which the mortgage setter retains the value of the mortgage with lower priority to the mortgage holder a clause allowing refinancing to any high priority mortgage under e);
40. The system of claim 39, comprising:   41. The system of claim 40, wherein the second percentage is greater than or less than the third percentage.   41. The system of claim 40, wherein the third percentage is equal to zero.   41. The system of claim 40, wherein the first and third percentages are equal.   41. The system of claim 40, wherein the second and third percentages vary according to a preset state.   45. The system of claim 44, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   41. The system of claim 40, wherein the second and third percentages are fixed until a preset time or state is reached.   The system of claim 46, wherein the preset state is selected from the group consisting of achieving a preset economic condition or expiring a preset time.   41. The system of claim 40, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   41. The system of claim 40, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   41. The system of claim 40, wherein a ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   41. The system of claim 40, wherein the preset state is a sale of collateralized real estate assets by the mortgage setter.   The mortgage at any time prior to expiration of a preset time, death of a mortgage setter, achievement of preset economic conditions, or expiration of the mortgage 41. The system of claim 40, wherein the system is selected from a group consisting of a setter's spontaneous selection.   41. The system of claim 40, wherein the preset time is selected from a group consisting of any whole number of months or years.   33. The system of claim 32, wherein the plurality of financial agreements after being underwritten or stored by a first entity are sold or transferred to a second investment instrument.   The system of claim 32, wherein the investment instrument is a plurality of equity, debt, conversion, hybrid or derivative units.   56. The system of claim 55, wherein the equity, debt, convertible, hybrid or derivative unit is publicly listed and traded.   56. The system of claim 55, wherein the equity, debt, convertible, hybrid or derivative unit is not publicly listed.   A computer-implemented financial system for maintaining a close approximation between an actual pool of investments and a desired pool of investments, the system comprising a plurality of systems each stored in a storage device operated by the system An investment mandate specifying a target value for a plurality of investment characteristics, wherein the system further comprises a data storage device in which actual values of the plurality of investment characteristics of the actual pool of the investments are maintained; The system compares the value in the storage device with the value in the data storage device, and only adds an additional investment having an investment characteristic that reduces the difference between the target value and the actual value. A system characterized by allowing as an addition to the actual pool.   59. The system of claim 58, wherein the investment includes a mortgage for real estate assets.   60. The system of claim 59, wherein the mortgage is full collateral dependent or partial collateral dependent. The total collateral dependency or partial collateral dependency mortgage is
(I) the mortgage holder grants funds to the mortgage holder equal to a first percentage of the value of the real estate asset used as collateral for a full or partial collateral dependent mortgage; And (ii) if at least one preset condition occurs, the mortgage setter plus a second percentage of any increase in the value of the collateral property asset to the financing of the funds, or Underwriting the mortgage holder with a third percentage reduction in the value of the collateral property asset, and / or (iii) the mortgage setter may provide the financing plus the first 2 percentage or minus the third percentage plus the fourth percentage of the value of the collateral property asset Undertaking repaying the mortgage rights holder on a recurring basis over the term of a mortgage-dependent or partially collateral-dependent mortgage; and / or (iv) Undertake to repay the mortgage holder on a recurring basis over the entire collateral dependent or partial collateral dependent mortgage period for supplementary payments relating to the percentage or minus the third percentage, plus standard floating interest rate or fixed interest rate And / or (v) the mortgage holder undertakes to compensate the mortgage setter by offsetting the value of the improvements made to the collateralized real estate asset, and / or (vi) the mortgage If the setter is a mortgage-dependent or partially-collateralized mortgage for the mortgage holder A clause that allows refinancing to any high priority mortgage based on the formula / (e) that holds the value of
61. The system of claim 60, comprising:   62. The system of claim 61, wherein the second percentage is greater than or less than the third percentage.   62. The system of claim 61, wherein the third percentage is equal to zero.   64. The system of claim 61, wherein the first and third percentages are equal.   62. The system of claim 61, wherein the second and third percentages vary according to a preset state.   66. The system of claim 65, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   62. The system of claim 61, wherein the second and third percentages are fixed until a preset time or state is reached.   68. The system of claim 67, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   62. The system of claim 61, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   62. The system of claim 61, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   62. The system of claim 61, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   62. The system of claim 61, wherein the preset state is a sale of collateralized real estate assets by the mortgage setter.   The preset state is before the expiration of a preset time, the death of a mortgage setter, the achievement of preset economic conditions, or the expiration of a mortgage with full or partial collateral dependency 62. The system of claim 61, wherein the system is selected from a group consisting of a voluntary selection of the mortgage setter at any point in time.   62. The system of claim 61, wherein the preset time is selected from a group consisting of any whole number of months or years.   A computer-implemented system for paying an investment pool including a financial agreement by a consignment financial intermediary introducing a financial agreement, wherein the system stores target values for a plurality of characteristics of the investment pool And the system further comprises a data storage device in which the corresponding characteristics of each proposed financial agreement to be introduced are stored, the system comparing the target characteristics with the proposed characteristics Allow the investment pool to accept only the proposed financial agreement that is within a preset threshold of the target characteristic, and further calculate a fee for introduction into the financial intermediary, the fee being the target A system characterized by changing according to the variation of the difference between the proposed property and the proposed property.   76. The system of claim 75, wherein the commission of the introduced financial intermediary also depends on the procurement performance of past financial agreements.   The system according to claim 75, wherein each financial agreement is a full collateral dependent or partial collateral dependent financial agreement. The above-mentioned collateral-dependent or partial collateral-dependent financial agreement
(I) the financial entity finances the consumer with funds equal to a first percentage of the value of the asset used as collateral for the financial agreement; and (ii) at least one preset In the event that a situation occurs, the consumer adds a second percentage of any increase in the value of the collateral asset to the financing of the funds, or a third of any decrease in the value of the collateral asset. Underwriting a repayment to the financial entity minus a percentage, and / or (iii) the consumer provides a loan of the funds plus the second percentage or minus the third percentage, plus the collateral assets To repay the fourth entity's value to the financial entity on a recurring basis throughout the term of the financial agreement. And / or (iv) the consumer makes supplementary payments related to the financing of the funds plus the second percentage or minus the third percentage, plus standard variable interest rates or fixed interest rates for the entire period of the financial agreement. Undertaking reimbursement to the financial entity on a recurring basis, and / or (v) undertaking the financial entity to compensate the consumer by offsetting the value of the improvements made to the collateral assets And / or (vi) a clause that allows the consumer to refinance any high priority financial agreement based on the formula / (e) that retains the value of the low priority financial agreement for the financial entity When,
76. The system of claim 75, comprising:   79. The system of claim 78, wherein the second percentage is greater than or less than the third percentage.   The system of claim 78, wherein the third percentage is equal to zero.   79. The system of claim 78, wherein the first and third percentages are equal.   79. The system of claim 78, wherein the second and third percentages vary according to a preset state.   The system of claim 82, wherein the preset state is selected from the group consisting of achieving a preset economic condition or expiring a preset time.   79. The system of claim 78, wherein the second and third percentages are fixed until a preset time or state is reached.   85. The system of claim 84, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   79. The system of claim 78, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   The system of claim 78, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   The system of claim 78, wherein a ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   79. The system of claim 78, wherein the preset state is a sale of collateral assets by the consumer.   The pre-set state is that the consumer has expired at any time prior to expiration of a pre-set time, consumer death, achievement of a pre-set economic condition, or expiration of the financial agreement. The system of claim 78, wherein the system is selected from a group consisting of spontaneous selections.   The system of claim 78, wherein the preset time is selected from a group consisting of any whole number of months or years.   A computer-implemented financial system for maintaining a close approximation between an actual pool of investments and a desired pool of investments, wherein the investment pool provides the financial resources that consumers desire and such financial resources Each having a financial agreement with a willing entity, the system having an investment mandate that specifies target values for a plurality of investment characteristics, each stored in a storage device operated by the system; And wherein the system further comprises a data storage device in which actual values of the plurality of investment characteristics of the actual pool of investments are maintained, wherein the system includes values in the storage device and in the data storage device And changing the debt obligation relationship of each consumer under the financial agreement to reduce the difference between the target value and the actual value. System.   94. The system of claim 92, wherein the financial agreement is a full collateral dependent or partial collateral dependent financial agreement. The above-mentioned collateral-dependent or partial collateral-dependent financial agreement
(I) the financial entity finances the consumer with funds equal to a first percentage of the value of the asset used as collateral for the financial agreement; and (ii) at least one preset In the event of a compromised condition, the consumer adds a second percentage of any increase in the value of the collateral asset to the loan of funds or a third of any decrease in the value of the collateral asset. Undertaking to repay the financial entity minus a percentage of the amount, and / or (iii) the consumer provides a loan of the funds plus the second percentage or minus the third percentage plus the collateral Repayment of the fourth percentage of the value of the asset to the financial entity on a recurring basis throughout the term of the financial agreement And / or (iv) the consumer makes a supplementary payment for the financing of the fund plus the second percentage or minus the third percentage, plus a standard variable interest rate or a fixed interest rate for the period of the financial agreement. Undertaking repayment to the financial entity on a recurring basis, and / or (v) undertaking the financial entity to compensate the consumer by offsetting the value of the improvements made to the collateral assets And / or (vi) allowing the consumer to refinance any high priority financial agreement based on a formula / (e) that retains the value of the low priority financial agreement for the financial entity. Clause and
94. The system of claim 92, comprising:   95. The system of claim 94, wherein the second percentage is greater than or less than the third percentage.   95. The system of claim 94, wherein the third percentage is equal to zero.   95. The system of claim 94, wherein the first and third percentages are equal.   95. The system of claim 94, wherein the second and third percentages vary according to a preset state.   99. The system of claim 98, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of preset time.   95. The system of claim 94, wherein the second and third percentages are fixed until a preset time or state is reached.   101. The system of claim 100, wherein the preset state is selected from the group consisting of achievement of preset economic conditions or expiration of a preset time.   95. The system of claim 94, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 2: 1.   95. The system of claim 94, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1: 1.   95. The system of claim 94, wherein the ratio of the first percentage, the second percentage, and the third percentage is 1: 1.5: 0.   95. The system of claim 94, wherein the preset state is a sale of collateral assets by the consumer.   The preset state is before the expiration of a preset time, the death of a consumer, the achievement of preset economic conditions, or the expiry of the financial agreement with full or partial collateral dependence 95. The system of claim 94, wherein the system is selected from a group consisting of a consumer's voluntary selection at any time.   95. The system of claim 94, wherein the preset time is selected from a group consisting of any whole number of months or years.   95. The system of claim 94, wherein the changed debt relationship of a consumer is selected from the group consisting of the first, second, third and fourth percentages and the maximum expiration time. For refinancing approval from a mortgage holder who has both a substantially conventional interest rate mortgage for a first financial institution and a second full collateral or partial collateral dependent mortgage for a second financial institution Accepting, rejecting or inquiring requests in real time or on a batch basis, the request for refinancing is made to the second financial institution, both mortgages secured by the same property And the method is
(I) inputting a new value and refinancing amount of the property resulting from a recent evaluation into a data input terminal connected to the data processing means to which the data storage means is connected;
(Ii) in the data storage means, the initial value of the property, the principal of the first mortgage, the principal of the second mortgage, first and second preset percentages, and the second mortgage Storing data including rising and falling percentages necessary to calculate the current repayment amount;
(Iii) using the data processing means to calculate a reference refinancing amount that is a product of the first preset percentage and the first mortgage principal;
(Iv) using the data processing means to calculate a current repayment amount of the second mortgage based on the new value of the property and the rising and falling percentages;
(V) calculating a modified refinancing amount that is a product of the second preset percentage and the current repayment amount using the data processing means;
(Vi) using the data processing means to subtract the modified refinancing amount from the reference refinancing amount to obtain a resulting refinancing amount;
(V) accepting the request for refinancing only if the refinancing amount to be approved is less than the resulting refinancing amount;
Including methods.   110. The method of claim 109, wherein the full collateral dependent or partial collateral dependent mortgage is subordinated collateral to the substantially conventional interest rate mortgage.   110. The method of claim 109, wherein the full collateral dependent or partial collateral dependent mortgage is substantially collateral with the conventional interest rate mortgage. A method of generating a digitally encoded electrical signal representative of the amount of credit for extension and renovation for a mortgage holder in a full collateral dependent or partially collateral dependent mortgage,
(I) The principal value of the mortgage, the first evaluation value of the house immediately before the improvement is performed, the second evaluation value of the house immediately after the improvement is performed, and the sale of the house that concludes the mortgage Or input data including final value of the house including the improvement, which is deemed sales, to the data processing device;
(Ii) The data processing device is configured to calculate an improvement difference including an increase in the second evaluation amount relative to the first evaluation amount, and to calculate an overall difference including the final evaluation amount minus the principal. Instructing, and
(Iii) The digital encoding, wherein the first signal represents a zero amount when the overall difference is negative or zero, and the second signal represents the improved difference amount when the overall difference is positive Further instructing the data processing device to output any one of two of the electrical signals;
Including methods. A method of generating a digitally encoded electrical signal representing the amount of adjustment principal of a full collateral dependent or partial collateral dependent mortgage, wherein the property value guaranteeing the full collateral dependent or partial collateral dependent mortgage is increased If the principal is adjusted by increasing the first percentage of the increase, and the property value guaranteeing the full collateral dependency or partial collateral dependency mortgage decreases, the principal The book is defined to be adjusted by decreasing by a second percentage of the decrease, the method comprising:
(I) showing the principal of the full collateral dependent or partial collateral dependent mortgage, the first and second percentages, and the adjusted principal determined according to one of several pre-set events A toggle marker consisting of either a first value or a second value indicating that an initial prepayment has been selected by the mortgage setter, and the property being either a sale of property or an appraisal value Inputting input data including a final value of
(Ii) Instructing to calculate a capital difference between the final value and the principal, and when the toggle marker is the first value, the capital difference is set to the first or second Instructing the data processing device to calculate the adjustment principal by multiplying each by a percentage of
(Iii) if the toggle marker is the second value, by setting the second percentage to zero and multiplying the capital difference by the first percentage or the reset second percentage Further instructing the data processing device to calculate the adjustment principal;
(Iv) further instructing the data processing device to output a digital encoded electrical signal indicative of the amount of adjustment principal;
Including methods.

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